Financial Literacy Question.
Ethan put $150 into a CD that pays 3% interest, compounded monthly. According to the rule of 72, how long will it take for his money to double?

A. 16 years
B. 12 years
C. 24 years
D. 48 years

I don't really know how the rule of 72 works. I'm trying it and I'm not getting any of the answers.

Question

Financial Literacy Question.
Ethan put $150 into a CD that pays 3% interest, compounded monthly. According to the rule of 72, how long will it take for his money to double?

A. 16 years
B. 12 years
C. 24 years
D. 48 years

I don't really know how the rule of 72 works. I'm trying it and I'm not getting any of the answers.

beccaboo333 · Answer

http://www.pinoywealthbuilder.com/wp-content/uploads/2013/09/RULE-OF-72.jpg This might help better.

anonymous · Answer

Perfect!

beccaboo333 · Answer

So you understand how to do the question now?

anonymous · Answer

yeah, the 72 part was what I didn't understand!

beccaboo333 · Answer

Alright good :)