Asked by tabatha nieves on Jun 09, 2024
Verified
According to the rule of 70, if the interest rate is 10 percent, about how long will it take for the value of a savings account to double?
A) About 6.3 years
B) About 7 years
C) About 7.7 years
D) About 10 years
Interest Rate
The percentage of a sum of money charged for its use, which can be seen as the cost of borrowing money or the return on saving.
- Implement the rule of 70 to calculate the increase of an investment or estimate the time it takes to double.
Verified Answer
SH
Saliyah HarrisJun 10, 2024
Final Answer :
B
Explanation :
The rule of 70 is a way to estimate the number of years it will take for an investment to double at a given annual rate of return by dividing 70 by the interest rate. So, 70 divided by 10 equals 7 years.
Learning Objectives
- Implement the rule of 70 to calculate the increase of an investment or estimate the time it takes to double.