If an investment pays 7% interest and you invest $1,000, about how long will it take you to double your money?
A) 6 years
B) 7 years
C) 8 years
D) 9 years

Question

Quizplus · Accepted Answer

The rule of 72 is a shortcut to calculate how long it will take to double your money at a given interest rate. To use the rule, you divide 72 by the interest rate. In this case, the interest rate is 7%, so 72 / 7 = 10.29 years. This means that it will take about 10 years to double your money.

If an Investment Pays 7% Interest and You Invest $1,000