Question

The rule of 70 is a measure of how long it will take for prices to __________ at a given inflation rate.

A. double
B. triple
C. quadruple
D. multiply by ten

Answer 1

A. double

Step-by-step explanation:

Rule 70 is used to calculate the numbers of years it takes for an investment or variable to double in value given a certain growth rate. In this case, the variable is prices and the growth rate is inflation rate. It is calculated by dividing number 70 by inflation rate.

For example;

Assume inflation rate is 6%, the prices will double in ; 70/6 = 11.7 years

And if inflation is 2%, the prices will double in 70/2 = 35 years