Using the rule of 72, approximate the following amounts: (a) If the value of land in an area is increasing 5 percent a year, how long will it take for property values to double? (Round your answer to 1 decimal place.)

It will take 14 years and 146 days to double the value.

Explanation:

The rule of 72 is a means of estimating the number of years it takes for an investment or your money to double.

Number of Years to Double= 72/Annual Rate of Return

N= 72/5= 14.40 years

To be more accurate:

0.40*365= 146 days

It will take 14 years and 146 days to double the value.

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