Asked by April Thompson on May 27, 2024
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If a savings account pays 3.5% interest, then according to the rule of 70 how long will it take for the account balance to double?
Rule of 70
A simple way to estimate the number of years it will take for an investment to double in size, calculated by dividing 70 by the annual rate of growth.
Interest
The cost of borrowing money, expressed as a percentage, paid by the borrower to the lender for the use of the lender's money.
- Use the rule of 70 to estimate the doubling time of an investment at a given interest rate.
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JN
Learning Objectives
- Use the rule of 70 to estimate the doubling time of an investment at a given interest rate.