An investment is growing by 9% each year. How long does it take the investment to double in value?
A)7 years
B)8 years
C)10 years
D)11 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 return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself. In this case, 72 divided by 9 equals 8 years.

An Investment Is Growing by 9% Each Year