September 3rd, 2010
admin
Question by Finance F: Finance?????
The “Rule of 72” suggests that an amount will double in 12 years at a 6 percent compound annual rate or double in 6 years at a 12 percent annual rate. Is this a useful rule, and is it an accurate one?
Best answer:
Answer by mule
Have you always wanted to be able to do compound interest problems in your head? Probably not, but it’s a very useful skill to have because it gives you a lightning fast benchmark to determine how good (or not so good) a potential investment is likely to be.
The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.
Yes, it is a useful tool and is reasonably accurate.
What do you think? Answer below!
Categories: Finance Tags: 6 years, amount, answer, benchmark, compound, compound interest, finance, government, interest problems, interest rate, investment, lightning, money, muleHave, number, percent, rate, rule, rule of 72, Scottish, scottish government, tool
September 3rd, 2010
admin
Question by Shake it up!: How do I find the production point on a PPF (PPC) curve?
I have a graph- a PPF curve- and I have a question asking me to find the production point on the graph. Where is the Production point, and how do I find it?
Best answer:
Answer by ttfreitas
You must have some other information besides the PPF like, for example, the opportunity costs of both goods. Without any other information it’s impossible to find that point. Anyway, what I do know is that the production point will necessarily by ON the frontier.
Let’s say you do have the opportunity cost of one good relative to the other. All you have to do is draw a line on the graph that represents such a cost and the production point will be where this line is tangent to the PPF.
Add your own answer in the comments!
Categories: Finance Tags: answer, Cost, curve, frontier, graph, information, line, opportunity, opportunity cost, opportunity costs, point, ppf curve, production, Question, relative, Shake, tangent, ttfreitasYou
September 3rd, 2010
admin
Question by cFnS: Fraud
Were you a victim of I was a victim of odometer fraud and air bag fraud. Turned out my 1996 Buick Century had its odometer rolled back over 30,000 miles and was in an accident too. Turned out the previous owner stuffed the steering wheel with packing peanuts and plastic bags rather than replace the airbag.
I bought the car in 1999, so there is no use. The man was 80!
Best answer:
Answer by jurydoc
caveat emptor
Know better? Leave your own answer in the comments!
Categories: Finance Tags: accident, air bag, airbag, answer, bag, Buick, buick century, Car, century, emptor, fraud, odometer, packing peanuts, plastic, plastic bags, Question, steering wheel, use, use the man, victim, WHEEL
