Using the rule of 72, determine the approximate time it will take $1,000 to double given the following interest rates.a) 5.5%b) 10.0%c) 30.0%d) 2.0%e) 4.5%
What will be an ideal response?
Since the rule of 72 says if we take 72/i we get the approximate number of years it takes for an amount to double, we can determine the answer for each interest rate.
a) 72/5.5 = 13.1 years
b) 72/10 = 7.2 years
c) 72/30 = 2.4 years
d) 72/2 = 36 years
e) 72/4.5 = 16 years
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