Approximately how long will it take for an investment to double in value if the interest rate is 10.5%?
A)6.86 years.
B)5.86 years
C)5.36 years
D)7.36 years.
E)2.36 years.

Question

Quizplus · Accepted Answer

The Rule of 72 is a simple way to estimate the number of years required to double the investment at a given annual rate of return. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself. In this case, 72 divided by 10.5 equals approximately 6.86 years.

Approximately How Long Will It Take for an Investment to Double