Ask Question
12 December, 20:33

Ted and Alan are in a race to double their money. Ted feels he will win if he puts his $4,000 into a savings account offering 4.5% interest compounded annually. Alan feels he will win because he intends to put his $1,000 into a savings account offering 6% interest compounded annually. Using the rule of 72, who will win, and how many years will it take to double his money? Alan will win. It will take 16 years. Alan will win. It will take 12 years. Ted will win. It will take 12 years. Ted will win. It will take 16 years.

+2
Answers (1)
  1. 12 December, 20:36
    0
    Ted:

    4,000 @ 4.5% interest compounded annually

    Alan:

    1,000 @ 6% interest compounded annually

    Rule of 72: divide 72 by the compound annual interest rate

    Ted: 72/4.5% = 16 years

    Alan: 72/6% = 12 years

    Alan will win. It will take 12 years.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Ted and Alan are in a race to double their money. Ted feels he will win if he puts his $4,000 into a savings account offering 4.5% interest ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers