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Medium · Mental Math & Estimation · Quant Trader interview question · compounding, rule-of-72, taylor-series, estimation, growth-rates
You are evaluating a high-yield bond with a guaranteed annual return of 7%. You plan to hold this bond for 10 years. To assess the total capital multiplier quickly during a meeting, you need to estimate the compound growth factor. Estimate the value of: $$ 1.07^{10} $$ (Choose the closest value).