Today we studied about The Rule of 72 . You can use this rule to calculate "The Interest Rate" or "The # of years to double" your amount of money. The formula:
(Interest Rate) x (Years to double) = 72
Because I can't find today's slide so I don't remember the question so clearly. It was like: You invest your money in 2 ways: $1200 a year or $100 a month with the interest of 6%.
Here is my answer for this question:
a) $1200 a year: b) $100 a month:
N=1 N=12
I%=6 I%=6
PV=0 PV=0
PMT=-1200 PMT=-100
FV= alpha+ solve= $1200 FV=alpha + solve=1233.556
P/Y=1 P/Y=12
C/Y=1 C/Y=12
So if u invest $100 a month in 12 months, u will gain extra: 1233.556-1200 = 33.556 dollars.
Next scribe is Ari5
