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16 August, 01:00

You are tearing down a building and find $1 in change that someone lost when working on the building 140 years ago. If, instead of being careless with the $1 in change, this person had deposited it into a bank and earned 2 percent interest every year for 140 years, how much would be in the account today according to the rule of 70?

a. $8

b. $32

c. $4

d. $16

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  1. 16 August, 01:04
    0
    The correct answer is D: $16

    Explanation:

    The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double.

    Number of Years to Double = 70/Annual Rate of Return

    In this exercise = 70/2 = 35 years

    Every 35 years the investment duplicates.

    35 years = $2

    70 years = $4

    105 years = $8

    140 years = $16
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