The "Rule of 72" States That Invested Money Doubles in Value

question 23

Multiple Choice

The "rule of 72" states that invested money doubles in value if the product of the interest rate (in percentage form) and time invested (in years) equals 72.Assuming continuous compounding,what exactly must the product be for money to double?

• A)69
• B)71
• C)73
• D)75

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Definitions:

Customer Support Costs

Expenses incurred by a business in providing assistance and service to its customers.

Customer-Sustaining Costs

Expenses involved in maintaining relationships with existing customers, such as service and support costs.

Production Costs

The total expense incurred in the process of creating a product or service, including raw materials, labor, and overhead expenses.