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tatiyna
2 months ago
9

On January 1, 1980, Moises deposited $1850 into a savings account paying 5.6% interest, compounded quarterly. If he hasn't made

any additional deposits or withdrawls since then, and if the interest rate stayed the same, in what year did his balance hit $3700, according to the rule of 72?
Computers and Technology
2 answers:
Natasha_Volkova [1K]2 months ago
8 0
According to the rule of 72, dividing 72 by the interest rate gives the time needed to double your investment. With an interest rate of 5.6%, we calculate 72/5.6 = 12.86 years. Thus, to increase the amount from $1850 to $3700, it would take approximately 12.86 years, suggesting that by late 1992 the balance would reach $3700.
Natasha_Volkova [1K]2 months ago
5 0
The answer is 1992.
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