Nancy would like to double the money in her retirement account in five years.According to the rule of 70,what rate of interest would she need to obtain her goal?
A)5 percent
B)7 percent
C)10 percent
D)14 percent

Question

Quizplus · Accepted Answer

The rule of 70 is a way to estimate the number of years required to double the investment at a given annual rate of return. It states that you divide 70 by the annual interest rate to get the doubling time. To double in 5 years, the rate would be 70/5 = 14 percent.

Nancy Would Like to Double the Money in Her Retirement