Ethan has $160,000 to invest today at an annual interest rate of 4%. Approximately how many years will it take before the investment grows to $324,000?

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 given annual rate of return, we divide 72 by the interest rate (4%) to get approximately 18 years to double the investment from $160,000 to $320,000. Since $324,000 is slightly more than double, it will take just over 18 years.

Ethan Has $160,000 to Invest Today at an Annual Interest