Approximately how many years will it take for an investment of $1,000 that yields 5% a year to double in value?

Question

Quizplus · Accepted Answer

The rule of 72 can be used to estimate how long it takes for an investment to double in value. By dividing 72 by the rate of return, we can determine the approximate number of years it will take for the investment to double.

In this case, 72/5 = 14.4, which means it will take approximately 14 years for the investment of $1,000 to double in value at a 5% annual rate of return. Therefore, the best choice is B.

Approximately How Many Years Will It Take for an Investment