You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 8 percent interest. Approximately how long must you wait for your investment to double in value?
A) 6 years
B) 7 years
C) 8 years
D) 9 years
E) 10 years

Question

Quizplus · Accepted Answer

Using the Rule of 72, you divide 72 by the interest rate (8%) to estimate the doubling time, which gives approximately 9 years.

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