148k views
4 votes
Question 9 of 10

2 Points
According to the rule of 72, in about how many years will $78 be worth $39 if
the rate of inflation is 5.8%?
A. 11.9 years
B. 12.4 years
C. 13.4 years
D. 6.7 years
SUBMIT

User Constexpr
by
8.0k points

1 Answer

6 votes

Answer:

B. 12.4 years

Explanation:

The rule of 72 says the doubling period multiplied by the interest rate in percent is equal to 72. Here, we're concerned with the doubling of the price index. That period will be ...

72/5.8 ≈ 12.4 . . . years

User Rajeev Akotkar
by
8.3k points

Related questions

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories