atalie invested $500.00 at a 4% interest rate. How long will it take for the $500.00 investment to
have a future value of approximately $1000.00? (Hint: There is a special circumstance that can
be used when an investment doubles.)
To determine how long it will take for the $500 investment to have a future value of approximately $1000, we can use the rule of 72. The rule of 72 states that if you divide 72 by the interest rate, it will give you an approximate idea of how long it takes for an investment to double.
In this case, the interest rate is 4%, so let's divide 72 by 4.
72 / 4 = 18.
Therefore, it will take approximately 18 years for Natalie's $500 investment to double and reach a future value of $1000.
To determine how long it will take for an investment to double, you can use the rule of 70. The rule of 70 states that you can estimate the number of years it takes for an investment to double by dividing 70 by the annual interest rate.
In this case, the investment is expected to double from $500 to approximately $1000. The interest rate is 4%, so we can use the rule of 70 to estimate the time it will take to double the investment.
70 / 4 = 17.5
Therefore, it will take approximately 17.5 years for the $500 investment to reach a future value of approximately $1000.