Answer:
To determine how long an investment will take to double
Explanation:
The Rule of 72 is a rule that shows a simple way to calculate how long an investment will take to double given a fixed annual rate of interest. This is obtained by dividing by 72 the annual rate of the return. From the rule, investors obtain a rough estimate of the years that it will take fir the initial investment to be doubled. The rate is expressed as a decimal or percentage. For example, using the rule of 72, an investor who invests $1,000 at an interest rate of 4% per year, will double their money in approximately 18 years.
