The rule of 72 states that whatever annual rate of return you receive on your investment will double in the number of years you get when you divide the rate of return into 72. If you invest $500.00 in a CD with a rate of 4%, how many years will it take to double your return?
A) 18
B) 26
C) 9
D) none of the above

Question

Quizplus · Accepted Answer

The rule of 72 states that you divide 72 by the annual rate of return to find the doubling time. 72 divided by 4% equals 18 years.

The Rule of 72 States That Whatever Annual Rate of Return