Question

question 7 of 10
lars deposited $50 into a savings account. according to the rule of 72, what interest rate will cause his money to double in approximately 29 years?

a. 1.7%

b. 0.4%

c. 0.6%

d. 2.5%

Explanation:

Step1: Recall Rule of 72 formula

$\text{Interest Rate} = \frac{72}{\text{Years to Double}}$

Step2: Plug in given years

$\text{Interest Rate} = \frac{72}{29}$

Step3: Calculate the value

$\text{Interest Rate} \approx 2.48 \% \approx 2.5\%$

Answer:

D. 2.5%