If you received a constant annual rate of return of 7% on an investment of $10,000, how many years will it take before you have $20,000?

Question

Quizplus · Accepted Answer

Using the Rule of 72, which is a simplified way to estimate the number of years required to double the investment at a fixed annual rate of return, you divide 72 by the annual rate of return. For a 7% return, 72 / 7 ≈ 10.29 years, so approximately 10 years are needed to double the investment.

If You Received a Constant Annual Rate of Return of 7