How long will it take an investment of $10,000 in a mutual fund that consistently earns an annual rate of return of 5% to double in value?
A) 5 years
B) 14 years
C) 70 years
D) 350 years

Question

Quizplus · Accepted Answer

To use the Rule of 72, divide 72 by the annual rate of return (5%). The result is 14.4, which means it would take approximately 14 years for the investment to double in value. Therefore, the best choice is B.

How Long Will It Take an Investment of $10,000 in a Mutual