Farou invests $2,000 at 8% interest. About how long will it take for Farou to double his investment (e.g., to have $4,000)?
A) 4 years
B) 5 years
C) 8 years
D) 9 years

Question

Quizplus · Accepted Answer

Using the Rule of 72, which is a simplified way to estimate the number of years required to double the investment at a fixed annual rate of interest, we divide 72 by the interest rate (8%). 72 / 8 = 9 years.

Farou Invests $2,000 at 8% Interest