You have money in an account at 6% interest, compounded weekly. To the nearest year, how long will it take for your money to double?
A) 9 years
B) 16 years
C) 7 years
D) 12 years

Question

Quizplus · Accepted Answer

The Rule of 72 is a simple way to estimate the number of years required to double the investment at a given annual rate of return. By dividing 72 by the annual rate of interest, you get an approximate number of years. For a 6% interest rate, 72 / 6 = 12 years. Although the interest is compounded weekly, the Rule of 72 gives a close approximation for annual compounding and is still useful for a rough estimate in this case.

You Have Money in an Account at 6% Interest, Compounded