Question

Vito just put some money into a cd that pays 12.7% interest. according to the rule of 72, in approximately how many years will he have 4 times the amount of money that he has now?

Answer 1

Vito's money will take approximately 5.67 years to quadruple based on an annual interest rate of 12.7%.

Step-by-step explanation:

To find out how long it will take for Vito's money to grow to four times its original amount, we can use the rule of 72. The rule of 72 states that if you divide 72 by the annual growth rate, it gives you the approximate number of years it will take for the money to double. In this case, Vito's money is growing at a rate of 12.7% per year. So, to find out how long it will take for the money to quadruple, we divide 72 by 12.7, which gives us approximately 5.67 years.