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Author Question: The Rule of 72 can be used to quickly estimate interest rates necessary to double your money in a ... (Read 72 times)

nmorano1

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on: Jul 10, 2018
The Rule of 72 can be used to quickly estimate interest rates necessary to double your money in a given time period without the use of a spreadsheet or calculator. However, the rule does NOT work for estimating growth rates.
 
  Indicate whether the statement is true or false.

Question 2

Given enough time, you could double your money with a risk-free investment.
 
  Indicate whether the statement is true or false.


chereeb

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FALSE
Explanation: The Rule of 72 works for any rate of change, not just interest rate returns.

Answer to Question 2

Answer: TRUE


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