Using the Rule of 72,if it will take approximately 12 years for your money to double,at what annually compounded interest rate is it invested?
A)6%
B)8%
C)9%
D)12%

Question

Quizplus · Accepted Answer

The Rule of 72 is a simple formula used to estimate the number of years required to double the invested money at a given annual rate of return. The formula is 72 divided by the annual rate of return equals the number of years it takes for the investment to double. So, if it takes 12 years to double, the formula is 72 / 12 = 6%, which means the money is invested at an annually compounded interest rate of 6%.

Using the Rule of 72,if It Will Take Approximately 12