Using the rule of 72, how long will it take $1,000 to double if you earn 6% interest per year?
A) 6 years
B) 10 years
C) 7.2 years
D) 12 years
E) Cannot calculate with information provided.

Question

Quizplus · Accepted Answer

The rule of 72 is a simple formula to estimate the number of years required to double the invested money at a fixed annual rate of interest. You divide 72 by the annual rate of interest. So, 72 divided by 6 equals 12 years.

Using the Rule of 72, How Long Will It Take