Kelvin has $2,500 but needs $5,000 to purchase a new golf cart.If he can invest his money at a rate of 12% per year,approximately how many years will it take the money in Kelvin's account to grow to $5,000? Use the Rule of 72 to determine your answer. Note: The golf cart's price may have changed by the time Kelvin's account reaches a value of $5,000.

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Quizplus · Accepted Answer

The Rule of 72 is a simple way to estimate the number of years required to double an investment at a fixed annual rate of interest. By dividing 72 by the annual interest rate (12%), we get 6 years for the investment to double from $2,500 to $5,000.

Kelvin Has $2,500 but Needs $5,000 to Purchase a New