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RULE OF 72

Total questions: 11

Worksheet time: 8mins

Name
Class
Date
1.

Who is the creator of the Rule of 72?

a)

Lieutenant Commander Cruz

b)

Bill Gates

c)

Elon Musk

d)

Albert Einstein

2.

Which of the following is the formula for the Rule of 72?

a)

Time Divided by 72 Equals the Interest Rate

b)

72 Divided by Interest Rate Equals the Time to double your money

c)

Interest Rate Multiplied by 72 Equals the time to double your money

d)

Your money deposit divided by 72 Equals the time to double your money

3.

Which investment/savings tool would yield the most interest back to you?

a)

Savings account

b)

Bonds

c)

Certificates of Deposit

d)

Stocks

4.

Which statement is NOT TRUE in regard to banks?

a)

They pay attractive interests rates in their savings and checking accounts

b)

They pay very little in interest rates

c)

They charge you to use your own money

d)

They make insane amounts of money lending your money to other people

5.

Which of the following investment(s) is/are best suited to double up your money in the least amount of time?

a)

Mutual Funds

b)

Stocks

c)

Certificates of Deposit

d)

Savings Accounts

e)

Checking accounts

6.

If I invest $20,000 in a Certificate of Deposit that pays 3% interest, how many years till I double up my money?

a)

5

b)

12

c)

24

d)

36

7.

If I invest $10,000 in a Stock that pays 12% interest at the age of 18, at what age will I see my money double up?

a)

24

b)

23

c)

22

d)

21

8.

If I invest $100,000 in a Stock that pays 12% interest at the age of 18, at what age will I see my money double up the second time around?

a)

29

b)

30

c)

31

d)

32

9.

If I invest $10,000 in a Mutual Fund that pays 6% interest at the age of 18, how much money will I have by the age of 30?

a)

$15,000

b)

$17,000

c)

$19,000

d)

$20,000

10.

What interest rate is required to double $4,000 in 9 years?

a)

7%

b)

9%

c)

10%

d)

8%

11.

In your own words: What is the importance of the Rule of 72?

4 lines