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Using the rule of 72, t = StartFraction 72 Over r EndFraction, how long will it take for the principal to double with an annual compound interest rate of 6%?
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35 votes
35 votes
Using the rule of 72, t = StartFraction 72 Over r EndFraction, how long will it take for the principal to double with an annual compound interest rate of 6%?

User Azat Gataoulline
by
2.6k points

1 Answer

19 votes
19 votes

Answer:

12 years

Step-by-step explanation:

Given


t = (72)/(r)

Required

How long will interest rate of
6\% double

We have:


t = (72)/(r)

Substitute 6 for r


t = (72)/(6)


t = 12

User Binary Pulsar
by
2.7k points
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