Investment Amount = PV = $5000
Let Interest Rate = r
Number of Years = 7
Future Value (FV) required after 7 years = 2*5000 = $10000
We know that FV = PV(1+r)n
=> 10000 = 5000(1+r)7
=> r = (10000/5000)1/7 - 1 = 0.1041 or 10.41%
using rule of 72, calculate you are hoping that your investment of$5000 will double in 7...
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