Kari would like to save $10,000 for a down payment on a house. Illustrate the difference in years it will take her to double her current $5,000 savings based on a 6%, 12%, and 18% interest rate.

Explanation:

The growing of the $10,000 will depend on the number of times the interest is compounded per year.

For didactic purposes, the period of compounding will be annual (once per year)

Formula:

Then:

For r = 6 %, r = 0.06

For r = 12%

For r = 18%

consumer credit. an advantage is that it allows consumers to afford expensive goods and services now, increasing their standard of living. however, a disadvantage is that it creates a trap for debt, if people do not have self control, they may see themselves filing personal bankruptcy.