Morgan is 12 years old and would like to invest $1,000 into a U.S. Treasury Note earning 3.0% interest.  How many times will Morgan’s investment double before she draws it out at age 60?


To determine how many times Morgan's investment will double, we can use the Rule of 72, which is a simple way to estimate the number of years it takes for an investment to double at a given annual interest rate.

The Rule of 72 states:
\[
\text{Number of years to double} = \frac{72}{\text{Interest Rate (\%)}}
\]

Given that the interest rate is 3.0%, we can calculate the number of years it takes for the investment to double:

\[
\text{Number of years to double} = \frac{72}{3.0} = 24 \text{ years}
\]

Next, we'll calculate the number of doubling periods between the ages of 12 and 60.

Morgan will have:
\[
60 - 12 = 48 \text{ years}
\]

Now, we determine how many times the investment will double in 48 years by dividing the total time by the time it takes to double:

\[
\text{Number of doubles} = \frac{48}{24} = 2
\]

So, Morgan's investment will double **2 times** before she draws it out at age 60.

Would you like further details or have any other questions? Here are 5 related questions you might find interesting:

1. How much will the investment be worth when Morgan is 60 years old?
2. What if the interest rate was 4% instead of 3%? How many times would the investment double then?
3. How is the Rule of 72 derived, and when is it most accurate?
4. What is the difference between simple interest and compound interest in investments?
5. How would inflation affect the value of Morgan's investment over time?

**Tip:** The Rule of 72 is a quick and useful tool for estimating the growth of investments but becomes less accurate at very high or very low interest rates.

Morgan is 12 years old and would like to invest $1,000 into a U.S. Treasury Note earning 3.0% interest. How many times will Morgan’s investment double before she draws it out at age 60?

Calculate how many times a $1,000 investment will double when earning 3.0% interest, using the Rule of 72. Find out the exact number of times it doubles before Morgan draws it out at age 60. Ideal for students in Grades 7-10 learning about interest calculation and exponential growth.

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