Bob has $2,500 invested in a bank that pays 6.8% annually.How long will it take for his funds to double?

Question

Quizplus · Accepted Answer

To find out how long it will take for Bob's funds to double, we can use the rule of 72, which states that dividing the annual interest rate into 72 will give us an estimate of how many years it takes for an investment to double.

In this case, dividing 72 by 6.8 gives us approximately 10.59 years. Therefore, it will take Bob's funds about 10.54 years to double, which is closest to choice C, 10.54 years.

Bob Has $2,500 Invested in a Bank That Pays 6