Question

vito just put some money into a cd that pays 12.7 interest compound quarterly. according to the rule of 72,in the approximately how years will he have 4 times the amount of money that he has now

Answer 1

11.34 years.

Explanation:

We have been Vito put some money into a cd that pays 12.7 interest compound quarterly.

Since the rule of 72 states that to find the number of years it will take an amount to double, we need to divide 72 by annual interest rate.

First of all let us find the number of years it will take to double Vito's money by dividing 72 by 12.7.

`\text{Time it will take to double Vito's money}=(72)/(12.7)`

`\text{Time it will take to double Vito's money}=5.66929133858\approx 5.669`

Since it will take 5.669 years to double Vito's money, so to find the time it will take Vito to have 4 times the money, we will multiply 5.669 by 2.

`\text{Time it will take to have 4 times Vito's money}=5.669*2`

`\text{Time it will take to have 4 times Vito's money}=11.338\approx 11.34`

Therefore, approximately in 11.34 years Vito will have 4 times the amount of money that he has now.