Using the Rule of 72, how long will it take something growing at 6% per year to double
A)100 years.
B)72 years.
C)12 years.
D)432 years.

Question

Quizplus · Accepted Answer

The Rule of 72 is a simple way to estimate the number of years required to double the invested money at a given annual rate of return. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself. In this case, dividing 72 by 6 gives 12 years.

Using the Rule of 72, How Long Will It Take