Time to attain goal: Your uncle is looking to double his investment of $10,000. He claims he can get earn 14 percent on his investment. How long will it be before he can double his investment? Use the Rule of 72 and round to the nearest year.
A) 5 years
B) 14 years
C) 10 years
D) None of the above

Question

Quizplus · Accepted Answer

The Rule of 72 is a quick way to estimate the number of years it will take to double your money at a given interest rate. To use the rule, simply divide 72 by the interest rate. In this case, the interest rate is 14%, so 72 / 14 = 5.14 years. Rounding to the nearest year, it will take 5 years for your uncle to double his investment.

Time to Attain Goal: Your Uncle Is Looking to Double