Based on the rule of 72, the amount of time to double your money (TDM) approximately equals:
A) 72/n.
B) 72/i.
C) 72/Initial investment.
D) 72/Future value.

Question

Quizplus · Accepted Answer

According to the rule of 72, TDM is equal to approximately 72 divided by the interest rate (i). Therefore, option B, 72/i, is the correct choice. Option A, 72/n, is not a valid formula for the rule of 72. Option C, 72/Initial investment, is not correct because the formula for the rule of 72 is based on interest rates, not initial investments. Option D, 72/Future value, is also incorrect because the formula is based on interest rates, not future values.

Based on the Rule of 72, the Amount of Time