Sofia has an opportunity to invest $18,000 she inherited from her great aunt. She wants to know how long it would take to double her money. The best investment rate she has found offers an 8% interest rate. Using the Rule of 72, calculate how long it would take the $18,000 to double at a rate of 8% in interest?

Question

Quizplus · Accepted Answer

The Rule of 72 is a simple way to estimate the number of years required to double the invested money at a given annual rate of return. By dividing 72 by the interest rate (8%), you get 72 / 8 = 9 years.

Sofia Has an Opportunity to Invest $18,000 She Inherited from Her