Pregunta
upstudy study bank question image url

Double your wealth. Kant Miss Company is promising its investors that it will double their money every
6 years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest
now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach
?
Using the Rule of 72 , what annual rate is Kant Miss promising?
(Round to the nearest whole percentage.)

Ask by Christensen Hanson. in the United States
Jan 22,2025

Solución de inteligencia artificial de Upstudy

Respuesta verificada por el tutor

Responder

Kant Miss is promising an annual rate of 12%.

Solución

Using the Rule of 72, you can estimate the annual interest rate required to double an investment in a given number of years. The formula is:
Given that Kant Miss Company promises to double your money every 6 years, plug the values into the formula:
Answer:
12 %

Respondido por UpStudy AI y revisado por un tutor profesional

error msg
Explicar
Simplifique esta solución

Mind Expander

To determine the annual rate Kant Miss Company is promising, we can use the Rule of 72. The Rule of 72 states that you can estimate the time it takes for an investment to double by dividing 72 by the annual interest rate. Since Kant Miss doubles your investment every 6 years, we can set up the formula as follows:
Solving for the annual rate gives:
So, Kant Miss is promising an annual rate of approximately .
Now, for your investment of to grow to using the double-rate promise, we can first calculate how many times it needs to double:
In terms of doubling, isn’t a power of , but if we keep doubling, we first calculate the number of doublings needed. Each doubling multiplies your investment by :
1st doubling:
2nd doubling:
3rd doubling:
4th doubling:
5th doubling:
6th doubling:
7th doubling:
It takes doublings, which corresponds to years to reach or surpass .
In conclusion, Kant Miss Company promises an annual rate of , and your investment would take around years to hit . A tempting offer, indeed!

preguntas relacionadas

\begin{tabular}{l|l}\multicolumn{1}{l}{ A variable that can't be accounted for is } & The author backs up the statement that the economy \\ can be unpredictable by pointing out that \\ a natural disaster such as a hurricane. As the & result of a hurricane, demand is guaranteed \\ to increase in a way that could not have been & (A) banking panics occur when confidence in the financial \\ system is strong. \\ predicted because the flow of goods into & (B) natural disasters can affect the demand for goods and \\ disrupt production. \\ impacted areas is blocked. If crops or power \\ facilities like oil refineries are damaged, then & C. customers are more willing to buy something when \\ interest rates are low. \\ demand is also affected. & (D) inflation occurs when prices for goods and services \\ decrease too quickly. \end{tabular}

Latest Economics Questions

\begin{tabular}{l|l}\multicolumn{1}{l}{ A variable that can't be accounted for is } & The author backs up the statement that the economy \\ can be unpredictable by pointing out that \\ a natural disaster such as a hurricane. As the & result of a hurricane, demand is guaranteed \\ to increase in a way that could not have been & (A) banking panics occur when confidence in the financial \\ system is strong. \\ predicted because the flow of goods into & (B) natural disasters can affect the demand for goods and \\ disrupt production. \\ impacted areas is blocked. If crops or power \\ facilities like oil refineries are damaged, then & C. customers are more willing to buy something when \\ interest rates are low. \\ demand is also affected. & (D) inflation occurs when prices for goods and services \\ decrease too quickly. \end{tabular}
¡Prueba Premium ahora!
¡Prueba Premium y hazle a Thoth AI preguntas de matemáticas ilimitadas ahora!
Quizas mas tarde Hazte Premium
Estudiar puede ser una verdadera lucha
¿Por qué no estudiarlo en UpStudy?
Seleccione su plan a continuación
Prima

Puedes disfrutar

Empieza ahora
  • Explicaciones paso a paso
  • Tutores expertos en vivo 24/7
  • Número ilimitado de preguntas
  • Sin interrupciones
  • Acceso completo a Respuesta y Solución
  • Acceso completo al chat de PDF, al chat de UpStudy y al chat de navegación
Básico

Totalmente gratis pero limitado

  • Solución limitada
Bienvenido a ¡Estudia ahora!
Inicie sesión para continuar con el recorrido de Thoth AI Chat
Continuar con correo electrónico
O continuar con
Al hacer clic en "Iniciar sesión", acepta nuestros términos y condiciones. Términos de Uso & Política de privacidad