Question

Using the Rule of 72, calculate how many years it will take to double an investment of

$1,000 given the following interest rates.
a. 2% interest rate
b. 5% interest rate
c. 7.5% interest rate

Answer 1

it would be c

Step-by-step explanation:

Answer 2

see below

Step-by-step explanation:

As per rule 72, it takes (72/interest rate to double the investment.

I.e., The time taken to double an investment= 72/ interest rate

To double 1000, it will take 2%

= 72/2

=36 years

At 5%

=72/5

=14.4 years

At 7.5 %

=72/7.5%

=9.6 years