Determine the doubling time of the investment.
-$14,500 at 6% compounded monthly
A) 17.37 years
B) 23.16 years
C) 9.27 years
D) 11.58 years

Question

Quizplus · Accepted Answer

The doubling time can be calculated using the Rule of 72, which is an approximation. For a 6% interest rate compounded monthly, the effective annual rate is slightly higher than 6%. However, using the Rule of 72, 72 divided by 6 gives approximately 12 years. More precise calculations using the formula for compound interest confirm that the doubling time is approximately 11.58 years.

Determine the Doubling Time of the Investment