Question

At the age of 10, Edgar received an inheritance of $10,000. His father wants to invest the money in an account that will double in value in 8 years. Approximately what interest rate does the father need to find in order to reach his goal?

Answer 1

9%

Explanation:

Use the rule of 72. If you want the money to double in 8 years, it will need to be at 9 percent interest rate to reach this goal.