If the interest earned by a CD is compounded quarterly, which rule is most accurate when calculation how long it will take the money invested in the CD to double

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Business

Waldo

9 August, 06:40

If the interest earned by a CD is compounded quarterly, which rule is most accurate when calculation how long it will take the money invested in the CD to double

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Yaritza · Answer 1

The Rule of 72.

Divide the annual rate of return by 72 to find the number of years it will take the investment to double. In this case because the rate is quarterly (4 times a year) you will need to adjust it to an annual rate to accurately use the rule of 72.

Karsyn · Answer 2

APEX! Rule of 69