If stocks earn an average rate of return of 12 %, their value doubles every
A)4 years.
B)6 years.
C)8 years.
D)12 years.

Name: If stocks earn an average rate of return of 12 %, their value doubles every A)4 years. B)6 years. C)8 years. D)12 years.
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Question

Quizplus · Accepted Answer

The rule of 72 states that to find the number of years it takes to double an investment at a given rate of return, you divide 72 by the rate of return. In this case, 72 divided by 12 equals 6 years. Therefore, choice B is the best answer.

If Stocks Earn an Average Rate of Return of 12