Question

James put $200 into a CD that pays 9% interest compounded quartely According to the rule of 72, approvimately hew long will if taike for his money to double? O A AB years O B. 16 years O C 12 years O n 8 years

Answer 1

8years

Step-by-step explanation:

To determine approximately how long it will take for James' money to double, we can use the rule of 72. The rule of 72 is a quick formula to estimate the number of years it takes for an investment to double in value based on a fixed annual interest rate.

The formula for the rule of 72 is:

Number of years to double = 72 / Annual interest rate

Given that James' CD pays 9% interest compounded quarterly, we can use the rule of 72 to find the approximate number of years it takes for his money to double:

Number of years to double = 72 / 9 = 8

So, it will take approximately 8 years for James' money to double in the CD with a 9% interest rate compounded quarterly. Therefore, the correct answer is:

O D. 8 years