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Taylor put $200 into a CD that pays 6% interest, compounded quarterly. According to the rule of 72, approximately how long will it take for his money to double?

2 Answers

4 votes

Answer:

12 years

Explanation:

User RVK
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According to the rule of 72, approximately it will take 3 years for his money to double. The rule of 72 is a formula used for determining the period of time needed to make an investment doubled its value based on its compounding interest rate. The rule of 72 formula is stated as Period of times = 72/compounding interest (Calculation: 72/6= 12 quarter = 3 years).
User JohnnBlade
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