Solve the problem.
-You have money in an account at 4% interest, compounded monthly. To the nearest year, how long will it take for your money to double?

Question

Quizplus · Accepted Answer

To find the time it takes for money to double with compound interest, you can use the Rule of 72, which is a simplified formula to estimate the number of years required to double the invested money at a given annual rate of interest. Divide 72 by the interest rate to get the approximate time in years. For a 4% interest rate, 72 / 4 = 18. Since the interest is compounded monthly, the actual time will be slightly less than 18 years, but the closest answer provided is 17 years.

Solve the Problem. -You Have Money in an Account at 4% Interest, Compounded