Question

Using the rule of 72,= , how long will it take for the principal to double with an annual compound interest rate of 6%?>6 years

>9 years
>12 years
>15 years​

Answer 1

>12 years

Explanation:

P' = P (1 + r)ⁿ

P' = 2P

2P = P (1 + 0.06)ⁿ

1.06ⁿ = 2

n = log₁.₀₆ 2 = 11.9