4
QuizMultiple Choice

Investing

Question 4 • FL-1200310-Algebra 1 A

Ted and Alan are in a race to double their money. Ted feels he will win if he puts his $4,000 into a savings account offering 4.5% interest compounded annually. Alan feels he will win because he intends to put his $1,000 into a savings account offering 6% interest compounded annually. Using the rule of 72, , who will win, and how many years will it take to double his money?

Question illustration
Answer
A
Alan will win. It will take 16 years.
B
Alan will win. It will take 12 years.
C
Ted will win. It will take 12 years.
D
Ted will win. It will take 16 years.
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