180k views
2 votes
If you deposit money today in an account that pays 15% annual interest, how long will it take to double your money? Round your answer to two decimal places____

1 Answer

3 votes

Final answer:

Using the Rule of 72, it takes approximately 4.8 years to double your money with a 15% annual interest rate, assuming the interest is compounded annually.

Step-by-step explanation:

To determine how long it will take to double your money with 15% annual interest, you can use the Rule of 72. This is a simple way to estimate the number of years required to double an investment at a fixed annual rate of interest.

By dividing 72 by the annual interest rate, you get the approximate number of years to double the money. So, in this case:

72 / 15 = 4.8 years

Therefore, it will take approximately 4.8 years to double your money at a 15% annual interest rate. This assumes the interest is compounded annually, and no additional deposits or withdrawals are made during this period.

User Adl
by
8.0k points