Question

How long does it take for an investment to double in value if it is invested at 10% compounded quarterly? Compounded continuously? At 10% compounded quarterly, the investment doubles in about 7.02 years. (Round to two decimal places as needed.) At 10% compounded continuously, the investment doubles in about years. (Round to two decimal places as needed.)

Answer 1

Answer: 7 years

Explanation: 72/10 =7.2 an amount invested at a 12% interest rate will double in about 6 years (72 ∕ 12 = 6). Using the Rule of 72, you can easily determine how long it will take to double your money.