What Is the Rule of 72

question 11

Multiple Choice

What is the rule of 72?

• A)Individuals over the age of 72 should invest in fixed-income securities exclusively.
• B)Investments double in value once every 72 compounding periods.
• C)The time until investments double in value is equal to the annual interest rate divided by 72.
• D)The time until investments double in value is equal to 72 divided by the annual interest rate.
• E)None of the above.

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Definitions:

Older Adults

Individuals typically aged 65 years and older, often characterized by increased healthcare needs and varying degrees of dependency or autonomy.

Middle Adults

Individuals typically between the ages of 40 and 65, often experiencing transitions in health, social roles, and responsibilities.

Chronic Health Problems

Long-term health conditions that are persistent and have ongoing effects on a person's health.

Loss of Independence

The reduction or elimination of an individual's ability to perform daily activities or make decisions autonomously, often due to physical or mental health conditions.