I have a programming assignment in C# from my professor that involves the Rule of 72. He clearly says that in order to find the amount of time in years it will take for an amount to double, you have to divide the rate into 72, so it would look like 72/r. Now my issue is, he does not say how to find the actual doubling time. This part is driving me crazy. How can you find the ACTUAL doubling time when you only have the rate? For those that want to see what the assignment is ill show you.
Rule of 72: This rule is used to approximate the time required for prices to double due to inflation.
If the inflation rate is r % then the Rule of 72 estimates that prices will double in 72/r years. For instance at tan inflation rate of 6% prices double in about 72/6 or 12 years. Write a program to test the accuracy of this rule. For each interest rate from 1% to 20% the program should display the rounded value of 72/r and the rounded value of the actual number of years required for prices to double at an r% inflation rate. Assume prices increase at the end of each year.
Interest rate: 1.00%
Rule of 72 doubling time: 72 years to double.
Actual Doubling time: 70 years to double.
Interest rate: 2.00%
Rule of 72 doubling time: 36 years to double.
Actual Doubling time: 36 years to double.
Interest rate: 3.00%
Rule of 72 doubling time: 24 years to double.
Actual Doubling time: 24 years to double.
I tried to group the output together but for some reason I cant. I hope this doesnt upset anyone willing to help me. SO right now, all i have is 72/r to give me the doubling years according to the rule of 72. How do i find the actual?