January 2015
Beginner
480 pages
31h 42m
English
Content preview from Financial Management: Core Concepts, Third EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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3.5 Doubling of Money: The Rule of 72
Another application of the time value of money equation enables us to determine how long it takes your money to double at a certain growth or interest rate. We can easily adapt this equation to the required waiting period for money to double by realizing that it is a problem of scale for which we can select 1 as the present value and 2 as the future value. By substituting the growth rate or interest rate into the equation, we can calculate how long it takes money to double at that rate. For 8%,
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Hit the N key for CPT of 9.01; input 8.0, hit the I/Y key; input -1, hit the PV key; input 0, hit the ...
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