Author Question: You can invest your money at a rate of 7 per year. At this rate it will take you just over ________ ... (Read 221 times)

09madisonrousseau09 · **on:** Jul 10, 2018

You can invest your money at a rate of 7 per year. At this rate it will take you just over ________ years to double your money. Use the Rule of 72 to determine your answer.

A) 4
B) 10
C) 5.5
D) There is not enough information to answer this question.

Question 2

In your first year out of college you hope to earn 60,000 per year. How many years will you have to work until you earn 120,000 if your income increases at a rate of 10 per year? Use the Rule of 72 to determine your answer.

A) You would need to work for just over 5 years to reach an income level of 100,000 per year.
B) You would need to work for just over 6 years to reach an income level of 100,000 per year.
C) You would need to work for just over 7 years to reach an income level of 100,000 per year.
D) You would need to work for just over 8 years to reach an income level of 100,000 per year.

macmac · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

Answer: B
Explanation: B) = 10.3 years via the Rule of 72.

Answer to Question 2

Answer: C
Explanation: C) = 7.2 years via the Rule of 72.