If money is invested at 8% per year,after approximately how many years will the interest earned be equal to the original investment?
A)5 years
B)6 years
C)9 years
D)12 years
E)8 years

Question

Quizplus · Accepted Answer

In order for the interest earned to be equal to the original investment, the investment must double. This can be achieved through the rule of 72, which states that the number of years required to double an investment at a given interest rate is approximately 72 divided by the interest rate. Thus, 72/8 = 9 years. Therefore, after 9 years at 8% per year, the interest earned will be equal to the original investment. Choice C is the only option that matches this approximation.

If Money Is Invested at 8% Per Year,after Approximately How