Question

A formula that helps you calculate how long it will take for your savings to double is the Rule of 72.

Answer 1

True I hoped this helped!

Explanation

Got it right on my quiz

Answer 2

True.

For example, if your annual rate of return is 12%, then it will take approximately 6 years to double your savings.

---> 72/12 = 6

If your return is 18%, Then it will take about 4 years.

---> 72/18 = 4

It works best for lower growth rates, less than 30%.