Question

Armando put $78 into a CD that pays 4.9% interest. According to the rule of

Answer 1

It will take 14.7 years for Armando's money to double.

Option C

Explanation:

The rule of 72 is generally used to estimate the number of years required to double the invested money at a given annual rate of return. And alternatively to find the number of years required to double the money at a given interest rate, we have to just divide the interest rate into 72.

Here, the interest rate is 4.9%. Therefore, it would be as follows

$\Rightarrow\frac{72}{4.9} = 14.7 \text{ years }$

Rule 72 can be used to identify the following:

• Number of years it takes an investment to double,
• Number of years it takes debt to double,
• The interest rate must earn to double in a time frame,
• Number of times debt or money will double in a period of time.

Answer 2

Answer: 14.7

Step-by-step explanation:

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