Under the rule of 72, an investment growing at 6 percent a year double…

Question

Under the rule of 72, an investment growing at 6 percent a year doubles in roughly:

Accepted 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'_

Answer

6 years

Answer

18 years

Answer

72 years

Under the rule of 72, an investment growing at 6 percent a year doubles in roughly:

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