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Sylvia invested $500 in an account compounded annually with an interest rate of 8%. Manuel invested $600 in an account with a compound interest rate of 7.25%. Using the rule of 72, StartFraction 72 Over t EndFraction, who will double their money first?
Sylvia will double her money first, in approximately 9 years.
Manuel will double his money first, in approximately 10 years.
Manuel will double his money first, in approximately 9 years.
Sylvia will double her money first, in approximately 10 years.

Sagot :

Answer: Sylvia will double her money in 9 years,

Step-by-step explanation:

Given:

- Sylvia invested $500 with an interest rate of 8%.

- Manuel invested $600 with an interest rate of 7.25%.

Let's calculate the time it takes for each person to double their money using the Rule of 72 formula:

1. Sylvia:

Interest rate = 8%

Time to double money =

 = 9 years

2. Manuel:

Interest rate = 7.25%

Time to double money =

 ≈ 9.93 years

Based on the Rule of 72 calculations, Sylvia will double her money in 9 years, while Manuel will double his money in approximately 9.93 years. Therefore, Sylvia will double her money first.

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