Question

1~ A quick. rough estimate of the time required for money to double can be obtained by dividing which ofthe following numbers by the compound interest rate?A.100 3.72 C.64 D.52

Answer 1

Answer:

B. 72

Step-by-step explanation:

The rule of 72 is used as a rough estimate of the number of years required for an investment to double.

According to this rule, the number of years 'n' necessary to double an investment at an annual rate 'r' is:

$n=\frac{72}{r}$

Therefore, the number that when divided by the interest rate gives the number of years required to double an investment is 72.

The answer is B. 72.