Determine the doubling time of the investment.
-6.25% APR compounded semiannually
A) 16.89 years
B) 11.26 years
C) 9.01 years
D) 22.53 years

Question

Quizplus · Accepted Answer

The Rule of 72 is a simple way to estimate the doubling time of an investment. By dividing 72 by the annual interest rate (6.25%), we get approximately 11.52 years. Since the interest is compounded semiannually, the actual doubling time is slightly less, making 11.26 years the closest option.

Determine the Doubling Time of the Investment