Question

part ii: practice problems
complete each question by showing your work, then writing your answer in the answer box.
question 1
becky expects a 7% annual return on her investment. approximately how many years will it take for her money to double?

Explanation:

Step1: Apply Rule of 72

The Rule of 72 is a quick way to estimate the time to double an investment, calculated by dividing 72 by the annual interest rate.
$\text{Time to double} = \frac{72}{\text{Annual return percentage}}$

Step2: Substitute the given rate

Plug in the 7% annual return into the formula.
$\text{Time to double} = \frac{72}{7} \approx 10.29$

Answer:

Approximately 10 years (or ~10.3 years for more precision)