Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
What is the rule of 72 used to determine? A. The approximate time it takes an investment to triple in value
B. The approximate time it takes an investment to double in value
C. The approximate time it takes to earn 10% interest
D. The approximate time it takes to earn $72 on any investment amount
The correct answer is B. The approximate time it takes an investment to double in value.
The Rule of 72 is a quick mathematical formula used to estimate the number of years required to double the investment at a fixed annual rate of return. You divide 72 by the annual interest rate (expressed as a percentage) to get the approximate number of years. For example, if your investment earns 6% annually, it would take about 72 / 6 = 12 years to double your investment.
If you have more questions or need further assistance, feel free to ask!