American_Bankers_Association
CTFA · Question #267
You can use to roughly estimate how many years a given sum of money must earn at a given compound annual interest rate in order to double that initial amount.
The correct answer is B. the Rule of 72. See the full explanation below for the reasoning.
Investment Management
Question
You can use to roughly estimate how many years a given sum of money must earn at a given compound annual interest rate in order to double that initial amount.
Options
- ARule 415
- Bthe Rule of 72
- Cthe Rule of 78
- DRule 144
How the community answered
(37 responses)- A14% (5)
- B78% (29)
- C3% (1)
- D5% (2)
Topics
#Rule of 72#compound interest#doubling time#time value of money
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