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Your uncle is looking to double his investment of $10,000. He claims he can get earn 14 percent on his investment. How long will it take to double his investment? Use the Rule of 72 and round to the nearest year.

Answer :

Answer:

The correct answer is 5.14 years.

Explanation:

According to the scenario, the given data are as follows:

Investment = $10,000

Rate of interest = 14%

So, we can calculate the time to double the investment by using rule 72 are as follows:

( Rule 72 )

Time to double investment = 72 ÷ interest rate

= 72 ÷ 14

= 5.14 years

Hence, the time it will take to double his investment is 5.14 years.

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