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At an Interest Rate of 10 Percent and Using the Rule

question 65

Essay

At an interest rate of 10 percent and using the Rule of 72,how long will it take to double the value of a lump sum invested today?
How long will it take after that until the account grows to four times the initial investment?
Given the power of compounding,shouldn't it take less time for the money to double the second time?


Definitions:

Ordinary Interest

Interest calculated based on a 360-day year, typically used in banking and finance for loans and savings.

Total Amount

The aggregate or final sum of various components, such as the total cost, payment, or investment value.

Exact Interest

A method of calculating interest based on a 365 or 360-day year, often used in banking and finance to determine the amount due on loans or investments.

365-Day Year

A convention used in interest calculations assuming a full year consists of 365 days.

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