The Rule of 72 Implies That a Country Will Double

question 31

Multiple Choice

The rule of 72 implies that a country will double its income in about 9 years if its growth rate is:

• A)4 percent.
• B)6 percent.
• C)8 percent.
• D)11.1 percent.

---

Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributed from the company's profits.

Note Payable

A written agreement where one party promises to pay another a definite sum of money at a specified future date or on demand.

Current Assets

Assets likely to be converted into cash within a year, such as inventory, accounts receivable, and cash and cash equivalents.

Current Liabilities

Short-term financial obligations that are due within one year or within the operating cycle.