Quiz: The rule of 72 for compound interest

Test your understanding of the Rule of 72, compound interest calculations, and doubling time concepts covered in this video

Mathematics mixed 8 Questions Video Quiz

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Q1 Beginner 1 pts

According to the video, using the Rule of 72, how long would it take to double your money with 6% interest compounding annually? Video Reference:
"Well, using the Rule of 72, I just take 72 / 6, and I get 6 goes into 72 12 times, so it will take 1..."

12 years 7.2 years 6 years 72 years

Q2 Intermediate 2 pts

The video shows that with 10% annual compound interest, the exact calculation yields what doubling time? Video Reference:
"is equal to 7.27 years, so roughly 7.3 years..."

7.27 years 7.2 years 7.0 years 7.5 years

Q3 Intermediate 2 pts

According to the video, at what interest rate would it take 70 years to double your money? Video Reference:
"if you get 1%, it will take you 70 years to double your money..."

1% 2% 3% 4%

Q4 Advanced 3 pts

The speaker explains that for low interest rates, the Rule of 72: Video Reference:
"For low interest rates, the Rule of 72 slightly, slightly overestimates how long it will take to dou..."

Slightly overestimates doubling time Slightly underestimates doubling time Is exactly accurate Varies randomly

Q5 Advanced 3 pts

When calculating the doubling time for 9% annual compounding, what is the actual answer versus the Rule of 72 approximation? Video Reference:
"The actual answer, 9% is 8.04 years. Once again, in our head, we were able to do a very, very, very ..."

Select all correct answers

Actual: 8.04 years, Rule of 72: 8 years Actual: 8 years, Rule of 72: 8.04 years Actual: 7.2 years, Rule of 72: 8 years Actual: 9 years, Rule of 72: 8 years

Q6 Intermediate 2 pts

According to the video, at 25% interest, it takes approximately how many years to double your money? Video Reference:
"At 25%, it will only take you a little over three years to double your money..."

A little over 3 years 2.5 years 4 years 5 years

Q7 Intermediate 2 pts

The video states that for continuous compounding, which Rule number tends to be more accurate? Video Reference:
"Continuous compounding, you'll get closer to 69 or 70..."

Rule of 69 or 70 Rule of 72 Rule of 78 Rule of 75

Q8 Intermediate 2 pts

True or False: According to the video, doubling your money at 2% takes exactly half as long as doubling at 1% Video Reference:
"When it takes 2%, it takes you 35 years to double your money. 1% takes you 70 years, so you double y..."

True

False

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Quiz: The rule of 72 for compound interest

According to the video, using the Rule of 72, how long would it take to double your money with 6% interest compounding annually? Video Reference: "Well, using the Rule of 72, I just take 72 / 6, and I get 6 goes into 72 12 times, so it will take 1..."

The video shows that with 10% annual compound interest, the exact calculation yields what doubling time? Video Reference: "is equal to 7.27 years, so roughly 7.3 years..."

According to the video, at what interest rate would it take 70 years to double your money? Video Reference: "if you get 1%, it will take you 70 years to double your money..."

The speaker explains that for low interest rates, the Rule of 72: Video Reference: "For low interest rates, the Rule of 72 slightly, slightly overestimates how long it will take to dou..."

When calculating the doubling time for 9% annual compounding, what is the actual answer versus the Rule of 72 approximation? Video Reference: "The actual answer, 9% is 8.04 years. Once again, in our head, we were able to do a very, very, very ..."

According to the video, at 25% interest, it takes approximately how many years to double your money? Video Reference: "At 25%, it will only take you a little over three years to double your money..."

The video states that for continuous compounding, which Rule number tends to be more accurate? Video Reference: "Continuous compounding, you'll get closer to 69 or 70..."

True or False: According to the video, doubling your money at 2% takes exactly half as long as doubling at 1% Video Reference: "When it takes 2%, it takes you 35 years to double your money. 1% takes you 70 years, so you double y..."