You deposit $20,000 in an account that doubles in seven years. How many years will it take the account to double again if it earns 14 percent per year?
A) 4.92 years
B) 5.29 years
C) 6.62 years
D) 8.22 years

Question

Quizplus · Accepted Answer

To find out how many years it will take for the account to double again at a 14 percent annual interest rate, you can use the Rule of 72. The Rule of 72 is a simple formula to estimate the number of years required to double the invested money at a fixed annual rate of interest. You divide 72 by the annual rate of interest to get the approximate number of years. In this case, 72 divided by 14 equals approximately 5.14 years. However, since the closest answer provided is 5.29 years, it is the correct choice due to rounding or slight variation in the calculation method used in the question.

You Deposit $20,000 in an Account That Doubles in Seven