The Rule of four is a simple mathematical approximation for
A) the present value required to double an investment.
B) the future value required to double an investment.
C) the payments required to double an investment.
D) the number of years required to double an investment.

Question

Quizplus · Accepted Answer

The Rule of Four is a simple mathematical approximation that estimates the number of years required to double an investment. It states that by dividing 72 by the annual interest rate or annual rate of return of the investment, one can obtain the approximate number of years it will take for the investment to double in value. For example, if an investment had a 6% annual rate of return, it would take approximately 12 years to double in value (72 divided by 6 equals 12).

The Rule of Four Is a Simple Mathematical Approximation for