Rule of works best with relatively low interest rates

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The Rule of 72 works best with relatively low interest rates. Suppose the time it will take for an investment to double in value is 12 years. Find the interest rate. What is the approximate rate implied by the Rule of 72? Now suppose that the doubling period is only 2 years. Is the approximation better or worse in this case?

Reference no: EM131219813

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Rule of works best with relatively low interest rates : The Rule of 72 works best with relatively low interest rates. Suppose the time it will take for an investment to double in value is 12 years. Find the interest rate. What is the approximate rate implied by the Rule of 72? Now suppose that the doublin..

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