Practice with the rule of 70: If you inherit $10,000 this year and you invest your money so that it grows 7% per year, how many years will it take for your investment to be worth $20,000? $40,000? $160,000?
(Note: Investments in stocks have grown at an average inflation-adjusted rate of 7% per year since the U.S. Civil War. We'll practice this some more in Chapter 28.)
Value today: $10,000.
Growth rate: 7% Number of years until money doubles: __________
Number of years until money quadruples: ___________
Number of years until your inheritance is 16X larger:__________.