Question

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

Answer 1

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