The Rule of 72 Implies That a Country Will Double

question 94

Multiple Choice

The Rule of 72 implies that a country will double its income in about 18 years if its growth rate is:

• A)4 percent.
• B)6 percent.
• C)8 percent.
• D)12 percent.

---

Definitions:

Salary Contribution

The portion of an individual's salary that is allocated to various types of benefits or investment plans, such as a retirement fund.

403b Plan

A tax-advantaged retirement savings plan available for public education organizations, some non-profit employers, and self-employed ministers in the United States.

Annual Return

The percentage change in an investment's value over a one-year period, including any dividends or interest payments.

Nominal Rate of Return

The rate of return on an investment without adjusting for inflation.