Question

question 6 of 10
if the interest earned by a cd is compounded annually, which rule is most accurate when calculating how long it will take the money invested in the cd to double?

a. rule of 69

b. rule of 72

c. rule of 4

d. none of the above

Explanation:

The Rule of 72 is a quick, accurate heuristic for estimating the time to double an investment with annual compounding. The Rule of 69 is more precise for continuous compounding, while the Rule of 4 has no relevance to doubling investment values.

Answer:

B. Rule of 72