What Annual Rate of Return Must You Earn to Double

question 83

Multiple Choice

What annual rate of return must you earn to double your money in about 9 years? Use the Rule of 72 to determine your answer.

• A)You would need to earn an annual rate of return of about 12%.
• B)You would need to earn an annual rate of return of about 10%.
• C)You would need to earn an annual rate of return of about 8%.
• D)There is not enough information to answer this question.

---

Definitions:

Marginal Revenue Product

measures the increase in revenue that results from the addition of one more unit of input while holding all other inputs constant.

Equilibrium

A state in a market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price.

MPs

Members of Parliament, elected officials who represent constituencies and have legislative responsibilities in the national government.

Purely Competitive Conditions

A market structure characterized by many buyers and sellers, where each seller offers an identical product, leading to price taken as given by individual sellers due to the market's competition.