alleryStart learning →Money earning 2 percent doubles in roughly how many years under the Rule of 72?
AAbout 24 years
BAbout 36 years
CAbout 72 years
DAbout 18 years
Answer & Solution
Correct answer: B. About 36 years
1. The Rule of 72 estimates a doubling time from a single interest rate.
2. Divide 72 by the rate written as a whole number.
3. Here that is 72 divided by 2, which is 36.
4. So the money takes about 36 years to double.
5. Answering 72 years uses the constant itself instead of dividing by the rate.
_Source: FDIC Money Smart for Adults (September 2018), Module 5: Your Savings, section The Rule of 72_
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