Theresa invested $5,000 in an account she expects will earn 7% annually.Approximately how many years will it take for the account to double in value?
A)8
B)9
C)10
D)11
E)12

Question

Quizplus · Accepted Answer

To calculate the number of years it takes for an investment to double, we can use the Rule of 72, which states that to find the number of years for an investment to double, divide 72 by the annual interest rate.

In this case, 72 divided by 7 equals approximately 10.3, which means it will take about 10 years for Theresa's account to double in value. Therefore, the best choice is C)10.

Theresa Invested $5,000 in an Account She Expects Will Earn