Personal Finance 1st Edition by Jack R. Kapoor

Exercise 11

Using the Rule of 72. Using the rule of 72, approximate the following amounts. (Obj. 3)

a. If the value of land in an area is increasing 6 percent a year, how long will it take for property values to double?

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b. If you earn 10 percent on your investments, how long will it take for your money to double?

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c. At an annual interest rate of 5 percent, how long will it take for your savings to double?

Step 1 of 3

As per rule of 72 the number of years required can be calculated by using following formula: