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Using that shortcut, savings earning 9% a year will take about how long to double?
A8 years
B6 years
C9 years
D12 years
Answer & Solution
Correct answer: A. 8 years
1. Divide 72 by the interest rate.
2. 72 divided by 9 is 8.
3. It takes about 8 years.
_Source: OpenStax Principles of Finance 2e, Chapter 7, Time Value of Money I._
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