Saving for a Goal According to the rule of 72, it takes about ten years for an investment to double in value if it earns 7.2 percent interest. But many low-risk investments earn far less than that. Look at the chart below, which shows an example of a $500 investment. Compare the three investments and answer the questions on a separate sheet of paper. Type of Initial Years for investment investment Rate of return investment to Risk of losing Total double money Savings Account $500 3.5% 20.6 Very low $1,000 Bonds $500 5.0% 14.4 Moderate $1,000 Stocks $500 7.2% 10.0 High $1,000 7. What is the main advantage of investing in stocks? What is the main disadvantage? 8. About how much longer does it take to reach your goal if you put the money in a savings account instead of stocks? 9. Why might a savings account be a better option than investing in stocks? 10. Which investment is a compromise between return and risk