Answer: 8 years
Step-by-step explanation:
You can find this out use the Rule of 72. By dividing 72 by the fixed interest rate, you can estimate the amount of time it will take for an investment to double in size:
= 72/10
= 7.2 years
= 8 complete years
Example:
Assume they invested $1,000. Interest rate is 10%.
Amount after 8 years will be:
= 1,000 * (1 + 10%)⁸
=$2,143.59
Investment is now more than double.
