Question

For how many years would $1,000 need to be invested at a 1% annual Interest rate to have an invest-

ment with a Future Value of $2,000?

Answer 1

To find out how many years it would take to double an initial investment with a 1% annual interest rate, you can use the rule of 72. The rule of 72 states that you can divide 72 by the annual interest rate to find out how many years it would take to double an investment.

In this case, you would divide 72 by 1 to get 72 years. Therefore, it would take 72 years for an investment of $1,000 at a 1% annual interest rate to have a future value of $2,000.