Emanuel invested $10,000 in a security that will double in value in 10 years. Approximately, what annual rate of return is this investment making?

Question

Quizplus · Accepted Answer

The investment doubles in 10 years, which can be calculated using the rule of 72. The rule of 72 is a simple formula to estimate the number of years required to double the investment at a given annual rate of return. By dividing 72 by the annual rate of return, you get the number of years it takes for the investment to double. In this case, 72 divided by 10 years gives an approximate annual rate of return of 7.2%.

Emanuel Invested $10,000 in a Security That Will Double in Value