Question

According to the Rule of 72, at 18% per year, it will take _____ years to double your money. Hint: round your answer to the nearest whole number of years.

a) 3
b) 4
c) 5
d) 6

Answer 1

The Rule of 72 is used to estimate how long it takes for an investment to double. At an annual growth rate of 18%, it will take approximately 4 years to double your money.

Step-by-step explanation:

The Rule of 72 is a formula used to estimate how long it will take for an investment to double based on a given growth rate. At an annual growth rate of 18%, it will take approximately 4 years to double your money.To calculate the number of years to double your money at an annual growth rate of 18%, divide 72 by the growth rate:

Number of years = 72 / growth rate

Number of years = 72 / 18 = 4

Therefore, it will take approximately 4 years to double your money at an annual growth rate of 18%.