your savings account returns (or interest rate) is 1% a year. how long until your initial savings double…

your savings account returns (or interest rate) is 1% a year. how long until your initial savings double, given that you dont add or remove funds? 36 years 58 years 72 years 85 years clear all

your savings account returns (or interest rate) is 1% a year. how long until your initial savings double, given that you dont add or remove funds? 36 years 58 years 72 years 85 years clear all

Answer

Explanation:

Step1: Use the rule - of - 72

The rule of 72 is a quick way to estimate the number of years it takes for an investment to double. The formula is $t=\frac{72}{r}$, where $t$ is the time in years and $r$ is the interest rate.

Step2: Substitute the interest rate

Given $r = 1%$, substituting into the formula $t=\frac{72}{1}$. $t = 72$

Answer:

72 Years