Jamil invested $9,500 in an account he expects will earn 5% annually. Approximately how many years will it take for the account to double in value? (Round answer to one decimal place.)
A)8.8
B)9.7
C)10.8
D)11.4
E)14.2

Question

Quizplus · Accepted Answer

To estimate the number of years it will take for an investment to double in value at a given interest rate, you can use the Rule of 72. This rule states that you divide 72 by the annual interest rate to get an approximate number of years for doubling. For a 5% interest rate, 72 divided by 5 equals 14.4 years. The closest option to this calculation is 14.2 years.

Jamil Invested $9,500 in an Account He Expects Will Earn