If $1 million is invested at 6% per year,in approximately how many years will the investment double?
A)10.1
B)11.9
C)12.9
D)15
E)8.7

Question

Quizplus · Accepted Answer

The Rule of 72 is a simple way to estimate the number of years required to double an investment at a given annual rate of return. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself. In this case, dividing 72 by 6 gives 12 years, which makes option B (11.9 years) the closest approximation.

If $1 Million Is Invested at 6% Per Year,in Approximately