At an effective interest rate of 12 a single sum invested to

At an effective interest rate of 12%, a single sum invested today will double itself in approximately:

8 years.

12 years.

6 years.

insufficient data to determine answer.

	a.	8 years.
	b.	12 years.
	c.	6 years.
	d.	insufficient data to determine answer.

Solution

Rule 72 says the approximate doubling period = 72/interest rate Therefore, doubling period = 72/12 = 6 Years Answer [c] 6 years