How fast will a $10,000 portfolio double if it is earning 10 percent annual returns?
A) every 10 years
B) every 7 years
C) every 5 years
D) every 14 years

Question

Quizplus · Accepted Answer

This is the rule of 72 where you divide 72 by the annual rate of return to determine the number of years it takes for an investment to double. In this case, 72 divided by 10 is 7.2 which rounds down to 7, so the portfolio will double approximately every 7 years.

How Fast Will a $10,000 Portfolio Double If It Is