Final answer:
Correct answer is none of the above. Using the Rule of 72, it takes approximately 10.91 years to double an amount of money with an inflation rate of 6.6%, which is none of the provided answer options. The Rule of 72 is a quick estimation to determine the doubling time.
Step-by-step explanation:
The student has asked about the time it takes for an amount of money to double at a given inflation rate. Applying the Rule of 72, a simple way to estimate the number of years it will take for an investment to double at a given annual rate of return, we can determine the answer. The Rule of 72 states that you divide 72 by the annual rate of return (or inflation rate) to get an approximate number of years it takes to double the investment.
In this case, we divide 72 by the inflation rate of 6.6%. This gives us approximately 10.91 years (72 / 6.6 = 10.91). Thus, none of the provided answer choices (A. 2 years, B. 1 year, C. 4 years, D. 3 years) are correct, as it will take roughly 11 years to double the amount.
It's important to note that the Rule of 72 is an estimation, and actual results may vary due to compounding at different periods (annually, semi-annually, quarterly, etc.) and other factors.