will it take your for money to double, earning compound interest that is
calculated once per year?
(b) Calculate how long it will take for your money to double at an interest rate
of 2%, 3%, and 4%. Can you see what the pattern is here? What would be
the doubling time for an interest rate of n%?
Optional: mathematically derive the formula you have just written down.
(c) Look up the “rule of 72” on the internet. Should it really be 72, or some
other number?
(d) Suppose the interest rate was ?1% (i.e. every year the bank took away 1%
of your money). What would the half-life of your money be?
I don't need the answers, but any help in the right direction would be greatly appreciated!
Number of periods is given by formula
n = LN (FV / PV) / LN (1 + i)
http://www.tvmschools.com/formula/lump-s...
To double set FV/PV = 2
