If Ernest Rutherford died and left $8000 to be invested for a period of 100 years to benefit medical students and scientific research, how often would this money double if it were to earn 5 per cent per year for all years?
A) every 10 years
B) every 14 years
C) every seven years
D) every five years

Question

If Ernest Rutherford died and left $8000 to be invested for a period of 100 years to benefit medical students and scientific research, how often would this money double if it were to earn 5 per cent per year for all years? 
A) every 10 years
B) every 14 years
C) every seven years
D) every five years

Quizplus · Accepted Answer

The Rule of 72 is a simple way to estimate how long an investment will take to double at a fixed annual rate of interest. By dividing 72 by the annual interest rate (5%), we find that the investment will double approximately every 14.4 years.

If Ernest Rutherford Died and Left $8000 to Be Invested