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A sum of money becomes 6 times its initial value in 25 years. How long will it take for the sum of money to double?

(A) 4.17 years
(B) 8.33 years
(C) 12.5 years
(D) 50 years

User VladLosev
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1 Answer

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Final answer:

The approximate time it would take for the sum of money to double is 8.33 years, given it becomes six times its value in 25 years by using the rule of 72 as an estimation method.

Step-by-step explanation:

The question asks about the time required for money to double given that it becomes six times its value in 25 years. To solve this problem, we can assume the wealth grows at a consistent compound interest rate, and we would use the rule of 72, which is a simplified formula to estimate the number of years required to double an investment at a given annual rate of return. Since the money becomes six times the original amount in 25 years, we deduce that it doubles and then triples (2 times 3 equals 6). Using the rule of 72, we can estimate that the doubling time can be roughly one-third of the time it takes to become six times its value since 2 x 3 = 6. Therefore, the time to double would be approximately 25 / 3, which is around 8.33 years.

User Nouran H
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