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21 December, 16:13

Your uncle is looking to double his investment of $10,000. He claims he can get earn 14 percent on his investment. How long will it take to double his investment? Use the Rule of 72 and round to the nearest year.

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  1. 21 December, 16:35
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    The correct answer is 5.14 years.

    Explanation:

    According to the scenario, the given data are as follows:

    Investment = $10,000

    Rate of interest = 14%

    So, we can calculate the time to double the investment by using rule 72 are as follows:

    (Rule 72)

    Time to double investment = 72 : interest rate

    = 72 : 14

    = 5.14 years

    Hence, the time it will take to double his investment is 5.14 years.
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