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:

Average Rate

An arithmetic mean that represents the change in a variable over a specific period of time.

Z-Test Statistic

A statistical measure used in hypothesis testing, which indicates how many standard deviations an element is from the mean.

Interpret

To explain the meaning of information or data, often by drawing inferences or conclusions.

Financial Planning

The process of creating strategies for managing a person's or organization's financial affairs to meet life goals.