Using the Rule of 72,how Long Will It Take $1,000

question 37

Multiple Choice

Using the rule of 72,how long will it take $1,000 to double if you earn 6% interest per year?

• A)12 years
• B)6 years
• C)7)2 years
• D)10 years
• E)Cannot calculate with information provided.

---

Definitions:

Degree Of Operating Leverage

A financial metric that measures the sensitivity of a company’s operating income to its sales, indicating how revenue growth translates into growth in operating income.

Variable Expenses

Expenses that fluctuate with production levels or business activity, such as materials and labor.

Advertising Budget

The allocation of funds toward advertising activities intended to communicate products, services, or brand messages to target customers.

Selling Price

The amount for which a product or service is sold to the customer.