3 years ago

The value of an investment is expected to grow by 5% per year.

Mathematics

1 answer:

koban [17]3 years ago

5 0

Answer:

Step-by-step explanation:

This is simple application of the rule of 72.

The rule of 72 determines how long an investment will take to double given fixed interest rate. We divide 72 by annual rate of return and get the estimate of number of years it will take for investment to double.

Thus, here, rate of interest is 5%, so we divide 72/5 and get our rough estimate.

72/5 = 14.4 Years

That's about 14 years, answer choice C

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