alleryStart learning →The rule of 72 estimates the time required to do what to a value?
ATriple it
BErase it
CDouble it
DHalve it
Answer & Solution
Correct answer: C. Double it
1. The rule of 72 answers one specific question quickly.
2. The formula for the rule of 72 has an unknown on one side.
3. That unknown is the required amount of time to double a value.
4. It is calculated by taking 72 and dividing by the known rate.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 7 'Time Value of Money I: Single Payment Value'_
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