2000 Euros invested in year 2001 becomes 64000 Euros in the year 2021. If the amount earned compoun interest during this period, interest being compounded annually, what was the approximate rate of interest in which it was invested?
- Period of investment is 20 years.
- From E2000 to E64000 we can see that the investment has appreciated 32 times.
- If n is the years it takes to double, we know that the amount has appreciated 32 times, therefore it must have doubled 5 times. So, 5n
if 5n=20 , n = 4years.
Using either the rule of 72 or 69
72/4 = app 18%
Pls include reasoning along with all answer posts.
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