Rule of 72 Approximately How Many Years Does It Take

question 56

Multiple Choice

Rule of 72 Approximately how many years does it take to double a $300 investment when interest rates are 8 percent per year?

• A)0.11 years
• B)4.17 years
• C)9 years
• D)11 years

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Definitions:

Yen

The official currency of Japan, known for being one of the most traded currencies in the foreign exchange market.

International Exchange

The trading of goods, services, and currencies among countries, allowing for the movement of resources across borders.

Current Account

A component of a country's balance of payments that includes the trade balance, net income from abroad, and net current transfers, reflecting the flow of goods, services, primary income, and secondary income.

Trade Deficit

Occurs when a country's imports exceed its exports during a specific time period, indicating that it is spending more on foreign trade than it is earning.