Calculate the doubling times for continuous compounding at 6%, 8%, and 9%, and compare them with those predicted by the rule of 72. What do you conclude? Why do you think people prefer the rule of 72 over a rule of 69.3?
Calculate the doubling times for continuous compounding at 6%, 8%, and 9%, and compare them with those predicted by the rule of 72. What do you conclude? Why do you think people prefer the rule of 72 over a rule of 69.3?
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter10: Exponential And Logarithmic Functions
Section10.2: Applications Of Exponential Functions
Problem 25PS
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Calculate the doubling times for continuous compounding at 6%, 8%, and 9%, and compare them with those predicted by the rule of 72. What do you conclude? Why do you think people prefer the rule of 72 over a rule of 69.3?
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