Question

If your investment doubles in 6​ 3/4 years, what approximate annual rate of return would you have​ earned? If you could earn an annual rate of​ 7.50%, approximately how long would it take for your investment to​ double?

Answer 1

Answer:

annual rate of return  = 10.67 %

time required for investment double = 9.60 years

Explanation:

given data

investment doubles = 6 $\frac{3}{4}$ year

annual rate = 7.50%

solution

we get here annual rate of return by rule no 72 that is

investment doubles = $\frac{72}{annual\ return \ rate }$     ........1

put here value

annual rate of return = $\frac{72}{6\frac{3}{4} }$

annual rate of return  = 10.67 %

so time required for investment double by rule 72

time required for double investment = $\frac{72}{7.50}$

so time required for investment double = 9.60 years