If you invest $250 at 16% interest, how much will you have after 18 years? (rule of 72 would be a preferred use)

$500 will become $4000 in 18 years. A further explanation is below.

Given,

Rate of interest,

As per rule 72,

By substituting the values, we get

Required time =

                         =

In 4.5 years, $250 investment will be:

=

= ($)

In 4.5 years, $500 investment will be:

=

= ($)

In 4.5 years, $1000 investment will be:

=

= ($)

In 4.5 years, $2000 investment will be:

=

= ($)

Thus the above answer is correct.

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Investment of $250 would be approximately $4,000 after 18 years.

Step-by-step explanation:

Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest.

By dividing 72 by an annual rate of interest, we can estimate of how many years it will take for the initial investment to double.

= = 4.5 years

It will take 4.5 years to double from $250 to $500

In 18 years it will double   = 4 times

therefore, the investment would be = $250 ⇒ 500 ⇒ $1000 ⇒ 2000 ⇒ 4000

Investment of $250 would be approximately $4,000 after 18 years.

597

step-by-step explanation:

i believe the correct answer is b.