Question

Ethan put $150 into a CD that pays 3% interest, compounded monthly. According to the rule of 72, approximately how long will it take for his money to double ?

Answer 1

Hi there

The rule of 72 is
72/rate=time
72÷3=24 years

Hope it helps

Answer 2

Answer:  

After 24 years the amount of the money in the account will get doubled using the rule of 72

Step-by-step explanation:

The rule of 72 states that :

Total time needed by the money in your account to get double is approximately equal to the 72 divided by the interest rate that is account is paid annually.

So, to find the number of year taken to get the money double using the rule of 72 :

$\text{Number of years = }\frac{72}{\text{Interest Rate}}\\\\\implies \text{Number of years needed = }\frac{72}{3}=24$

Hence, after 24 years the amount of the money in the account will get doubled using the rule of 72