Question

question 1 of 10
according to the rule of 72, if randall invests $700 and $1900 into two separate accounts with the same interest rate, which amount will double faster?

a. $700

b. $1900

c. both will double at the same rate.

d. none of the above

Explanation:

Step1: Recall Rule of 72

The Rule of 72 formula is $\text{Time to Double} = \frac{72}{\text{Annual Interest Rate (in \%)}}$.

Step2: Analyze variables

The formula only depends on the interest rate, not the initial principal amount.

Step3: Compare both investments

Both accounts have the same interest rate, so their time to double is identical.

Answer:

C. Both will double at the same rate.