If money is invested in a savings account earning 4.5% interest compounded yearly, how many years will pass until the money doubles?
A) 15.75
B) 0.41
C) 0.66
D) 15.40

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, you divide 72 by the interest rate. Here, 72 / 4.5 ≈ 16, so approximately 15.75 years are needed.

If Money Is Invested in a Savings Account Earning 4