According to the rule of 72, if Gina invests $100, $500, and $1000 into three separate accounts with the same interest rate, which amount will double fastest?

Question

Mathematics

Kira Levy

27 February, 02:28

According to the rule of 72, if Gina invests $100, $500, and $1000 into three separate accounts with the same interest rate, which amount will double fastest?

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Answers (1)

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Macey Middleton · Answer 1

Let's say the APR is 5%. That means you get 5% of your balance back every year. The $100 balance would get $5 back, the $500 balance would get $25 back, and the $1000 balance would get $50 back. Therefore, all of the balances would take the same amount of time to double, and it would take all of them 20 years.

$5*20 years=$100

$25*20 years=$500

$50*20 years=$1000