Rule of 72 Approximately How Many Years Does It Take

question 131

Multiple Choice

Rule of 72 Approximately how many years does it take to double a $500 investment when interest rates are 4% per year?

• A) .06 years
• B) 6 years
• C) 6.94 years
• D) 18 years

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Definitions:

Price of Output

The amount of money that a producer receives for selling one unit of a good or service.

Equilibrium Wage

The wage rate at which the quantity of labor supplied and the quantity of labor demanded are equal.

Price of Output

The amount of money charged for a product or service produced by a business or an economy.

Labor

The application of human physical and intellectual labor in the creation of goods and services.