Question

7. Deborah invested $3000 into a fund that is expected to earn 8.2% per year. If you use the Rule of 72, about how long will it take the fund to be worth $6000?

Answer 1

Answer:

About 9 years

Step-by-step explanation:

The rule of 72 tells us that the amount of time it takes to double your investment is 72 divided by the interest rate.

To get an approximation, we round of interest rate of 8.2% to 8% and then use the rule.

Time = $\frac{72}{8}=9$

For deborah's investment of $3000 to go to $6000, it would take around 9 years.