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From: rb@houxn.UUCP (R.BOTWIN)
Newsgroups: net.invest,net.taxes
Subject: Re: ZERO Coupon Certificates
Message-ID: <529@houxn.UUCP>
Date: Fri, 12-Apr-85 09:40:21 EST
Article-I.D.: houxn.529
Posted: Fri Apr 12 09:40:21 1985
Date-Received: Sat, 20-Apr-85 00:05:34 EST
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Xref: linus net.invest:573 net.taxes:682

[]
Simplest method to get "ballpark" answers is use the guzinta-72 method!

Ex: if money doubles in 5 years, then 5 guzinta 72 14.4 times, so it's about
14.4% interest!

Therfore:

7 yrs  2-> 4    is  doubling 1      int= 10.3%
10     2-> 6         "       1.5         10.8
15     2-> 10                2.25        10.8
21     2-> 20                3.25        11.1
29     2-> 50                4.56        11.3

it's not precise....but it's close enough for government work!