Answer:
$1,100
Step-by-step explanation:
Calculation for what will the investment be worth after 16 years
Rule of 72 is the rule or methods which help in estimating an investment's doubling time.
Therefore According to the rule of 72 what we are going to do is to double the amount of money invested in the Certificate of deposit which was $550
Hence,
Since $550 was invested at an annual interest rate of 4.5%. Thus the rule of 72 tells us that the money will double every 16 years,
Approximately:
Years Balance
Now $550
16 $1,100
( The amount of $550 doubles every 16 years)
Therefore what the investment be worth after 16 years will be $1,100