Question

Ben put $75 into a CD that pays 1.5% interest compounded monthly According to the rule of 72 approximately how long will it take for his money to double?

Answer 1

72÷1.5=48 years
.................

Answer 2

The answer is 48 years.

Explanation:

The Rule of 72 is used by investors to get a rough estimate of how long an investment will take to double itself with a fixed annual rate of interest. Hence, we divide the given rate of interest by 72 to get a rough estimate.

Here the given information is : Ben put $75 into a CD that pays 1.5% interest compounded monthly

So, time needed to double the CD is
`(72)/(1.5)= 48` years.