Answer to Question #187457 in Macroeconomics for Thùy Dương

Question

If Ernest Rutherford died and left $8000 to be invested for a period of 100 years to benefit medical students and scientific research, how often would this money double if it were to earn 5 percent per year for all years?

a. every 10 years

b. every 14 years

c. every seven years

d. every five years

Answer 1

Using Rule 70:

$n=\frac{70}{r}=\frac{70}{5}=14$

b.