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    Rule of 72

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    The "rule of 72" states that the number of periods "n" that it will take to double an investment whose rate of return is "r" percent is approximately 72/r. That is, nr is approximately equal to 72. Verify this approximation for r = 4,6,8 and 10.

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    In order to answer this question, we need to calculate the time period (since we ...

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    The solution explains the calculations using rule of 72.