The rate at which Rule of 72 is exact. Rule of 72: The rule of 72 is a thumb rule which states that if the interest rate is divided by 72 then the number of periods that the amount takes to double can be calculated. By this rule, the interest rate which is needed to double a money in a given time period can also be calculated.

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Chapter 4, Problem 74QAP

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To determine: The rate at which Rule of 72 is exact.

Rule of 72:

The rule of 72 is a thumb rule which states that if the interest rate is divided by 72 then the number of periods that the amount takes to double can be calculated. By this rule, the interest rate which is needed to double a money in a given time period can also be calculated.

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