John Madrid Put $1,000 into a Mutual Fund Yielding an 18

question 2

Multiple Choice

John Madrid put $1,000 into a mutual fund yielding an 18% Annual Rate of Return. Using the Rule of 72 calculate approximately how long will it take to double in value.

• A) three years, four months
• B) three years, seven months
• C) four years
• D) four years, four months
• E) five years

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Definitions:

Population Increases

refers to the rise in the number of people in a particular area, affecting various aspects of society including demands for goods and services.

Fixed Costs

Those costs that remain essentially at the same level, regardless of any changes in the volume of production.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

Charge Price

The action of setting a specific amount of money as the cost for a product or service.