
Understanding the Rule of 72

Interactive Video
•
Mathematics, Business
•
6th - 10th Grade
•
Hard

Lucas Foster
FREE Resource
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5 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the Rule of 72 used for?
Determining the risk of an investment
Predicting stock market trends
Estimating the time to double an investment
Calculating the interest rate of a loan
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If an investment has a 6% annual return, how many years will it take to double according to the Rule of 72?
14 years
12 years
8 years
6 years
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
For an investment with a 9% annual return, what is the approximate doubling time using the Rule of 72?
6 years
8 years
10 years
12 years
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is the Rule of 72 most accurate for growth rates between 6% and 10%?
Because it is a government standard
Because it is based on historical data
Because it approximates the natural logarithm
Because it is a simple mathematical trick
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the main benefit of using the Rule of 72?
It provides an exact doubling time
It simplifies complex financial calculations
It guarantees investment success
It predicts future market conditions
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