Sylvia invested 500 in an account compounded annually with an interest rate of 8%. Manuel invested 600 in an account with a compound interest rate of 7.25%. Using the rule of 72, who will double their money first

Question

Mathematics

Drew Mays

30 January, 22:48

Sylvia invested 500 in an account compounded annually with an interest rate of 8%. Manuel invested 600 in an account with a compound interest rate of 7.25%. Using the rule of 72, who will double their money first

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Lobster · Answer 1

Sylvia's investment would double first

Step-by-step explanation:

The number of years it takes for amount invested to double itself using the 72 rule is 72 divided by rate of interest as computed below:

Sylvia investment:

Sylvia's investment would double in 9 years' time (72/8)

Manuel's investment"

Manuel investment of $600 would double itself in 9.9 years' time (72/7.25)

From the above analysis, Sylvia's investment of $500 at the 8% rate of interest would double first