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Under the rule of 72, an investment growing at 6 percent a year doubles in roughly:
A12 years
B6 years
C18 years
D72 years
Answer & Solution
Correct answer: A. 12 years
1. Apply the same single division at a different rate.
2. The rule of 72 gives the time required to double a value.
3. Divide 72 by the known interest or growth rate.
4. Here that is 72 divided by 6.
5. That gives roughly 12 years.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 7 'Time Value of Money I: Single Payment Value'_
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