Based on the Rule of 72, what interest rate do you need to earn to double your money in 6 years?
A) 8%
B) 12%
C) 7%
D) 6%

Question

Quizplus · Accepted Answer

According to the Rule of 72, you divide the number 72 by the interest rate to determine the number of years it takes to double your money.

72/Interest Rate = Number of Years to Double Your Money

So, if you want to double your money in 6 years, you need an interest rate that satisfies the equation:

72/Interest Rate = 6

Solving for Interest Rate:

Interest Rate = 72/6 = 12

Therefore, you need an interest rate of 12% to double your money in 6 years.

The correct answer is B.

Based on the Rule of 72, What Interest Rate Do