Question

At 6.4 percent interest, how long does it take to double your money? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer 1

At a 6.4 percent interest rate, it takes approximately 11.25 years to double your money, as estimated by the Rule of 72.

Step-by-step explanation:

To determine how long it will take to double your money at a 6.4 percent interest rate, you can use the Rule of 72, a simple formula that estimates the number of years required to double the invested money at a given annual rate of return. You divide 72 by the annual interest rate to get the approximate number of years.

For an interest rate of 6.4 percent, the calculation would be:

Years to double = 72 ÷ Interest Rate

Years to double = 72 ÷ 6.4

Years to double = 11.25

Therefore, at a 6.4 percent interest rate, it would take approximately 11.25 years to double your money.