Question

Suppose you have invested $1500 at an APR of 8%. Use the Rule of 72 to estimate how long it will be until your investment reaches $3000.

Answer 1

Answer:

25 Years. thank you for your question

Answer 2

The time required for the investment of $1500 reaches $3000 with APR of 8% using the rule of 72 is 9 years.

What is the Rule of 72?

The rule of 72 is the easy way to calculate the number of years required the investment with the given interest rate. It can be calculated as,

$t\approx\dfrac{72}{r}$

Here, (t) is the time period and (r) is the rate of return.

The invested amount is $1500 and the value of APR is 8%. The time we have to calculate using the rule of 72.

The final amount of the investment is $3000 which is double the initial amount. Thus, the time period required to double the investment with 8% of interest is,

$t\approx\dfrac{72}{8}\\t\approx9$

Thus, the time required for the investment of $1500 reaches $3000 with APR of 8% using the rule of 72 is 9 years.

Learn more about the rule of 72 here;

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