Benjamin would like to double the money in his retirement account in seven years. According to the rule of 70, what rate of interest would he need to earn to attain his objective?
A)7 percent
B)5 percent
C)14 percent
D)10 percent

Question

Quizplus · Accepted Answer

The rule of 70 states that to find the number of years required to double an investment at a given annual rate of return, you divide 70 by the annual rate of return. Conversely, to find the rate needed to double in a certain number of years, you divide 70 by the number of years. So, 70 divided by 7 years equals 10 percent.

Benjamin Would Like to Double the Money in His Retirement