At Very High Interest Rates the "Rule of 72" Will

question 92

True/False

At very high interest rates the "Rule of 72" will result in a small estimation error for the estimate of the time for an investment to double.

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Definitions:

Indirect Method

A way of presenting the cash flow statement that adjusts net income for changes in balance sheet accounts to calculate cash flow from operating activities.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, reducing its book value on the balance sheet.

Operating Activities

Business activities that relate directly to the production, sale, and delivery of a company's products and services.