70 and 110 rule

We are going to learn 70 and 110 rule.

Q. In how many years $1000 will double if rate of interest is 14%.

Tell me how many minutes will it take you to calculate this?

I will tell you a method through which you will solve this in less than 5 seconds!

All you have to do is to divide 70 by rate of interest. Here rate of interest is 14%, so we get 70/14=5.

So it will take 5 years to double the money.

Q. In how many years $1000 will triple if rate of interest is 11%.

All you have to do is divide 110 by rate of interest. Here rate of interest is 11%, so we get 110/11=10.

So it will take 10 years to triple your money.

Now next time whenever your dad/mom asks you to calculate on these terms then don't get embarrassed!

Now try these (Select Between <<>> to see the answer) :

Q. In how many years my money will double if rate of interest is 8.75%? A. <<8 years>>

Q. My money doubled in 7 years, what was my rate of interest? A. <<10%>>

Q. John deposited $49875 at 5% interest rate for X years and when his money doubled he deposited it in another bank which tripled his money in Y years at same rate of interest. Calculate X+Y. A. <<36 years>>

Q. John deposited $98498 for 6 years to get his money as double, then he deposited his money in another bank to get his money doubled in 8 years. Calculate when he got more rate of interest and by how much? A. <<Second bank by 2.09%>>

Later I will tell you more about principle rate and time but for now enjoy this small trick. And believe me there are some questions in CAT/ XAT/ GMAT /GRE which applied these concepts.

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Thats it folks, catch you next time, until then if you have any query regarding anything contact me at friggere.Sumit@gmail.com