Question

If you deposit money today in an account that pays 3.4% annual interest, how long will it take to double your money? Round your answer to the nearest whole number. years

Answer 1

Using rule of 72 formula,

Doubling time (number of years) = 72 / Annual interest rate

Here,

Annual interest rate = 3.40%

Now,

Doubling time (number of years) = 72 / 3.40%

Doubling time (number of years) = 21.18 years

It will take 21.18 years to double your money.