Question

The value of an investment is expected to grow by 5% per year. How long will it take for the value to double?

About 4 years
About 7 years
About 14 years
About 23 years

Answer 1

14 years and combos are good

Answer 2

Answer: It will take about 14 years for the value to double.

Explanation:

Hi, to answer this question we have to apply the rule of 72.

To estimate the doubling time we have to divide 72 by the interest rate in percentage form, which in this case is 5%.

Mathematically speaking:

72/ 5 =14.4 =about 14 years

It will take about 14 years for the value to double.

Feel free to ask for more if needed or if you did not understand something.