Compounding Estimation: The Rule of 72 - Quant Trader Interview Question
Difficulty: Easy
Category: Mental Math & Estimation
Practice quant interview questions from top firms including Jane Street, Citadel, Two Sigma, DE Shaw, and other leading quantitative finance companies.
Topics: finance, compounding, estimation, mental-math, wealth-management
Problem Description
In a client meeting, a portfolio manager asks you to quickly estimate how long it will take for a client's capital to double in value, assuming a fixed annual return of 6%, compounded annually. You do not have a calculator.
Using standard financial heuristics, what is the estimated time required?
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