If stocks earn an average rate of return of 11 %, their value doubles approximately every
A) 5.8 years.
B) 6.6 years.
C) 7.2 years.
D) 9.1 years.

Question

Quizplus · Accepted Answer

The "Rule of 72" is a way to estimate the number of years it will take for an investment to double in value, given a fixed annual rate of return. By dividing 72 by the annual rate of return (in this case, 11%), we get approximately 6.55 years, which rounds to 6.6 years, making option B the closest answer.

If Stocks Earn an Average Rate of Return of 11