Question

If your investment doubles in 6​ 3/4 years, what approximate annual rate of return would you have​ earned? If you could earn an annual rate of​ 7.50%, approximately how long would it take for your investment to​ double?

Answer 1

annual rate of return = 10.67 %

time required for investment double = 9.60 years

Step-by-step explanation:

given data

investment doubles = 6
`(3)/(4)` year

annual rate = 7.50%

solution

we get here annual rate of return by rule no 72 that is

investment doubles =
`(72)/(annual\ return \ rate )` ........1

put here value

annual rate of return =
`(72)/(6(3)/(4) )`

annual rate of return = 10.67 %

so time required for investment double by rule 72

time required for double investment =
`(72)/(7.50)`

so time required for investment double = 9.60 years