According to the Rule of 70, it takes 70 years for a sum of money to double in value when the interest rate is 5 percent.

Name: According to the Rule of 70, it takes 70 years for a sum of money to double in value when the interest rate is 5 percent.
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Question

According to the Rule of 70, it takes 70 years for a sum of money to double in value when the interest rate is 5 percent.​

Quizplus · Accepted Answer

The Rule of 70 estimates the number of years it will take for an investment to double in value by dividing 70 by the annual rate of return. At a 5 percent interest rate, it would take 14 years (70/5) for a sum of money to double, not 70 years.

According to the Rule of 70, It Takes 70 Years