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Assignment - A7 This assignment will focus on using the Rule of 72 to evaluate various investment scenarios. Make sure that you have viewed the two videos that talk about how to use this quick and easy shortcut formula for computing how long it will take an investment to double. Here is the formula for the Rule of 72 : ORN Use this rule to answer these questions: 1. Marjorie wants to invest the $1000 she got for a graduation gift from her parents and wonders how long it will take it to grow to $2000. She is considering several investment options. Compute the Years to Double for each scenario: A. Savings account with interest rate of 1.15% B. Treasury bond with interest rate of 2% C. U.S. savings bond with interest rate of 3.5% D. Certificate of Deposit (C.D.) with interest rate of 0.90% E. Personal loan to her cousin with interest rate of 5% 2. Jorge wants to take his wife on a nice vacation for their 20 year anniversary, which is in 12 years. He has $1500 to invest and needs to have $3000 for the trip. What interest rate does Jorge need to find in order to meet his investment goal of having $3000 in 12 years? (Hint: You need to use the equation, plug in the values you know, and solve for the Yearly Rate) 3. The average Stock Market return since 1926 has been around 10%. According to the Rule of 72 , how often will an individual's investment double when put into the Stock Market? 4. Jing has $7500 that she has saved from her dog-walking job throughout high school. When she graduates from college in four years, she would like to have $15,000 to use as a down payment on her first house. If Jing is going to realize her dream, what interest rate will she have to invest her money at? 5. Jack is 22 years old and would like to invest $2000 into a U.S. Treasury Note earning 7.5\% interest. How many times will Jack's investment double before he withdraws it at age 70

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