According to the Rule of 72, What Approximate Interest Rate

question 43

Multiple Choice

According to the Rule of 72, what approximate interest rate is being offered on a deposit that doubles in value over an eight-year period?

• A)7.2 percent
• B)8.0 percent
• C)9.0 percent
• D)12.5 percent

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Definitions:

Debt Ratio

A financial metric comparing the total debt of a company to its total assets, indicating the proportion of a company's assets that are financed by debt.