Question

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%?

Answer 1

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`