Rule of 72 Worksheet

Understand and apply the Rule of 72 to estimate the doubling time of an investment or debt.

Grade 10 Math Financial LiteracyRule of 72

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Includes

Fill in the BlanksMultiple ChoiceShort AnswerTrue / False

Standards

CCSS.MATH.CONTENT.HSA-APR.A.1CCSS.MATH.CONTENT.HSN-RN.A.2

Topics

Rule of 72Financial LiteracyInvestingCompounding

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Rule of 72 Worksheet

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Read each question carefully and use the Rule of 72 to calculate the approximate doubling time for investments or the time to double for debt. Show your work where applicable.

1. The Rule of 72 is a quick way to estimate the of an investment.

2. To use the Rule of 72, you divide 72 by the annual rate.

3. If an investment earns 8% annually, it will take approximately years to double.

4. The Rule of 72 is most accurate for interest rates between and percent.

1. If you have an investment that earns 6% interest annually, how long will it take to double your money according to the Rule of 72?

6 years

9 years

12 years

18 years

1. You have $5,000 to invest. If you find an investment opportunity that promises an average annual return of 10%, how many years will it take for your initial investment to grow to $10,000, according to the Rule of 72?

2. Sarah has a credit card debt with an annual interest rate of 18%. How long will it take for her debt to double if she only makes minimum payments and the interest compounds?

1. The Rule of 72 provides an exact calculation for doubling time.

True

False