According to the Rule of 72, If You Have $15

question 53

True/False

According to the rule of 72, if you have $15, 000 in an account that grows at the rate of 12 percent annually, it will take approximately six years for the $15, 000 to double to $30, 000.

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Definitions:

Compounded Monthly

Interest calculation method where the accumulated interest is added to the principal at the end of each month, leading to "interest on interest".

RRSP

A Registered Retirement Savings Plan, a tax-deferred retirement savings account available in Canada.

Annuity

A financial instrument designed to offer a steady flow of income to someone, mainly used for retirement purposes.

Quarterly

Pertaining to something that occurs every three months or four times a year.