Question

A house purchased for $216,500 gains 2% of its value every year. If this growth rate continues, in how many years will the house be worth twice its original value

Answer 1

Answer: 36 years

Step-by-step explanation:

You can use the Rule of 72 to calculate how long it might take the house to double in value.

The Rule of 72 works by dividing 72 by the interest rate as a whole number and the result will be a rough estimate of the time in years it will take for the investment to double in size:

= 72 / 2

= 36 years