Homework Quiz. Rule of 72 Interest Rate 8% 12% 6% 2%.03% Years for money to double 9 years 6 12 36 2400 years.

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Presentation transcript:

Homework Quiz

Rule of 72 Interest Rate 8% 12% 6% 2%.03% Years for money to double 9 years years

I = P x R x T Sally is saving money for college and she currently has $200 in her savings account. Her bank pays a rate of 1% on her money. If her money compounds annually, what will her account be worth in three years? I= ??? P= 200 R=.01 T= 1 year (three times)

Solution 200 x.01 x 1 = x.01 x 1 = x.01 x 1 =

What would she have after 50 years?

What if her money compounded monthly? For fifty years?