Which of the Following Is the Best Description of the Rule

question 23

Multiple Choice

Which of the following is the best description of the Rule of 72?

• A) The Rule of 72 tells how what an investment is worth when interest rates are expected to double.
• B) The Rule of 72 tells how what interest rates are when an investment is expected to triple.
• C) The Rule of 72 tells how long it takes an investment to triple at a given interest rate.
• D) The Rule of 72 tells how what interest rates are when an investment is expected to double.
• E) The Rule of 72 tells how long it takes an investment to double at a given interest rate.

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Definitions:

Clinton Administration

The executive branch of the U.S. government from 1993 to 2001, under President Bill Clinton.

Real Federal Spending

Government expenditures adjusted for inflation, reflecting the actual purchasing power of spending.

Marginal Personal Income Tax Rate

The rate at which the last dollar of a person's income is taxed, influencing decisions on earning additional income.

Revenue Collected

The total amount of money received by a company or organization from its sales or services.