Suppose your grandmother dies and leaves you $100,000. You are trying to figure out how long it will take for it to double in value and you don't have a calculator handy. What concept would you use?

Question

Quizplus · Accepted Answer

The Rule of 72 is a simple method to estimate the number of years it takes for an investment or money to double in value with a given interest rate. It involves dividing 72 by the interest rate. In this case, assuming a reasonable interest rate, dividing 72 by the rate of return would give an estimate of how many years it would take for the $100,000 to double in value. This calculation is easy to do mentally and doesn't require a calculator. Therefore, the best choice is C - The Rule of 72.

Suppose Your Grandmother Dies and Leaves You $100,000