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Name: _______________________ The Rule of 72 The Rule of 72 tells you how long it will take for your money

to double. Divide 72 by an interest rate to determine the number of years it will take your money to double Rule of 72 Examples 1) For exam le! assume you "an earn #$ on your money. %ow long will it take &1'' to grow to &2''( )nswer* 72 + #$ interest , - years 2) .n the other hand! say you have a set time eriod in mind. /ou "an figure out what interest rate you need to earn to double your money. 0f you have &2'' today and need a total of &1'' in 1 years! what interest rate do you need to earn( 72 +1 years , 1#$ interest

)nswer the following 2uestions using the Rule of 72. 1. /ou "an earn 3$ on your money. %ow long will take you to double your money(

2. /ou are offered a "han"e to double your &1'!''' investment in # years. %ow mu"h is the interest rate being offered(

4. %ow long will it take a &2!''' investment to be"ome &1!''' at an interest rate of 1'$(

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