Suppose that you inherit $10,000 and put your money into a savings account that grows at an inflation-adjusted return of 2% per year. Use the rule of 70 to calculate how many years it will take for your investment to be worth $20,000, $40,000, and $160,000. Number of years until money doubles: Number of years until money quadruples: Number of years until inheritance is 16 times larger:
Suppose that you inherit $10,000 and put your money into a savings account that grows at an inflation-adjusted return of 2% per year. Use the rule of 70 to calculate how many years it will take for your investment to be worth $20,000, $40,000, and $160,000. Number of years until money doubles: Number of years until money quadruples: Number of years until inheritance is 16 times larger:
Chapter13: Inflation
Section: Chapter Questions
Problem 12SQ
Related questions
Question
Suppose that you inherit $10,000 and put your money into a savings account that grows at an inflation-adjusted return of 2% per year. Use the rule of 70 to calculate how many years it will take for your investment to be worth $20,000, $40,000, and $160,000.
Number of years until money doubles:
Number of years until money quadruples:
Number of years until inheritance is 16 times larger:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning