Asked by Aaron Russell on May 27, 2024
Verified
If a savings account pays 7% interest, then according to the rule of 70 how long will it take for the account balance to double?
Rule of 70
A formula used to estimate the number of years required for an investment or the economy's output to double, calculated by dividing 70 by the annual growth rate.
Interest
The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
- Employ the rule of 70 to calculate the investment's doubling period based on a specific interest rate.
Verified Answer
KJ
Learning Objectives
- Employ the rule of 70 to calculate the investment's doubling period based on a specific interest rate.