Which of the Following Statements About the Rule of 72

question 129

Multiple Choice

Which of the following statements about the Rule of 72 is not true?

• A) It is a mathematical approximation for the number of years required to double an investment.
• B) It illustrates the power of a discounted rate.
• C) It can be used to approximate the interest rate needed to double an investment for a specified amount of time.
• D) None of the above.

---

Definitions:

Formal Rule Making

A type of rule making that is used when legislation requires a formal hearing process with a complete transcript; consists of publication of the proposed rule in the Federal Register, a public hearing, publication of formal findings, and publication of the final rule if adopted.

Federal Register

The government publication in which an agency publishes each proposed rule, along with an explanation of the legal authority for issuing the rule and a description of how the public can participate in the rule-making process, and later publishes the final rule.

Notice Of Proposed Rule Making

A formal announcement by a government agency that it plans to introduce, change, or delete regulations or policies, inviting public comment.

Right Of Appeal

The legal ability to request a higher court to review and change the decision of a lower court.