Your uncle is looking to double his investment of $10,000. He claims he can get earn 14 percent on his investment. How long will it take to double his investment? Use the Rule of 72 and round to the nearest year.
A) 5 years
B) 14 years
C) 10 years
D) 7 years

Question

Quizplus · Accepted Answer

The Rule of 72 is a quick way to estimate how long it will take for an investment to double. To use the rule, divide 72 by the annual interest rate. In this case, the annual interest rate is 14%, so 72 / 14 = 5.14 years. Rounding to the nearest year, it will take 5 years for the uncle to double his investment.

Your Uncle Is Looking to Double His Investment of $10,000