What Is the Rule of 72

Multiple Choice

What is the rule of 72?

A) Individuals over the age of 72 should invest in fixed-income securities exclusively.
B) Investments double in value once every 72 compounding periods.
C) The time until investments double in value is equal to the annual interest rate divided by 72.
D) The time until investments double in value is equal to 72 divided by the annual interest rate.
E) None of the above.