Question

Pablo deposited 57 into a savings account for which interest is compounded quarterly according to the rule 72 what interest rate will cause his money to double is approximately 44 years

Answer 1

To find the interest rate that will cause Pablo's money to double in approximately 44 years, we can use the rule of 72. The interest rate is approximately 1.64%.

Step-by-step explanation:

To find the interest rate that will cause Pablo's money to double in approximately 44 years, we can use the rule of 72. The rule of 72 states that dividing 72 by the interest rate will give you the approximate number of years it takes for money to double. In this case, we need to find the interest rate that makes the money double in 44 years. So, we divide 72 by 44 to get the interest rate.

Interest rate = 72 / 44 ≈ 1.6363636363636363

Therefore, the interest rate that will cause Pablo's money to double in approximately 44 years is approximately 1.64%.

Answer 2

R= annual rate 72/0.25r=44.4 44*4 is the number of compounding periods 72.4/r =176,,288/r=176 so 176r = 288 r = 288/176 r = 1.636 percent or 0.01636 Let's check 1.01636^44 = just over 2