According to the Rule of 72, You Can Do Which

question 62

Multiple Choice

According to the Rule of 72, you can do which one of the following?

• A)double your money in five years at 7.2 percent interest
• B)double your money in 7.2 years at 8 percent interest
• C)double your money in 8 years at 9 percent interest
• D)triple your money in 7.2 years at 5 percent interest
• E)triple your money at 10 percent interest in 7.2 years

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Definitions:

Useful Life Estimate

The period over which a fixed asset is expected to be usable by a company, affecting depreciation calculations.

Retroactive Changes

Adjustments made to past financial statements, policies, or calculations to correct errors or align with new accounting standards.

Future Years

Refers to the period of time that lies ahead, used in planning, forecasting, or projecting financial and operational activities.

Plant Asset

Long-lived tangible assets used in the production and distribution of goods and services, such as machinery and equipment.