The rule of 72 is used to estimate the time that it would take for your money to: quadruple grow to \( \$ 1 \) million double

The **Rule of 72** is a simple formula used to estimate the number of years required to **double your investment** at a fixed annual rate of return. **Here's how it works:** \[ \text{Number of Years} \approx \frac{72}{\text{Annual Interest Rate (\%)}} \] **Example:** - If you have an investment that earns **6%** annually: \[ \frac{72}{6} = 12 \text{ years} \] It would take approximately **12 years** for your initial investment to double. **Regarding Your Options:** 1. **Quadruple**: The Rule of 72 specifically estimates the time to **double** an investment, not quadruple it. 2. **Grow to \$1 million**: This is a specific financial goal and would require more complex calculations involving the initial investment amount, interest rate, and time. The Rule of 72 doesn't directly estimate this. 3. **Double**: **✓ Correct** – The Rule of 72 is designed to estimate the time it takes for your money to **double**. **Summary:** - The Rule of 72 is used to estimate the time it would take for your money to **double**.