Question

On January 1, 1990, Emilio deposited $1650 into a savings account paying 6.2% interest compounded monthly. If he hasn't made any additional deposits or withdrawals since then, and if the interest rate has stayed the same, in what year did his balance hit $3300, according to the rule of 72?

Answer 1

1990 + 11 = 2001 this would give you the answer of 2001

Answer 2

In 2001 years hit $3300

Explanation:

On January 1,1990

Emilio deposited $1650 into saving account paying 6.2% interest compounded monthly.

Rule of 72

`(72)/(Rate)=\text{Time for investment to double}`

Rate = 6.3%

`\text{Time for investment to double}=(72)/(6.3)=11.61`

In 11.61 years amount hit $3300 into account.

Reference year was 1990. After 11 years hit $3300

Therefore, 1990 + 11 = 2001

At t=0 , January 1, 1990

At t=11.61, July 10, 2001

Thus, In 2001 years Emilio hit $3300 into account.