Using the rule of 72, estimate (do not calculate exactly) the time necessary to double in...

Question

Question

Using the rule of 72, estimate (do not calculate exactly) the time necessary to double in quarters:

$40 at 1% per quarter

Answer 1

Answer #1

72 quarters

Explanation:

The Formula for the Rule of 72 Is

Time to double the principal amount = 72/interest rate per period

where:

Interest Rate=Rate of return on an investment

If the interest per quarter is 1%, then it will take (72 / 1) = 72 quarters or 18 years to double the principal

Answer 2

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