What rule of thumb generates the number of periods required for an investment to double at a given interest rate?
A) simple growth
B) rule of 70
C) rule of 100
D) linear growth

Question

Quizplus · Accepted Answer

The rule of 70 states that to find the approximate number of periods required for an investment to double, you divide the interest rate into 70. For example, if the interest rate is 7%, then it would take approximately 10 periods (70/7) for the investment to double. This rule of thumb is commonly used in finance and can help individuals make quick estimations about the growth potential of investments.

What Rule of Thumb Generates the Number of Periods Required