Rule of 72 Approximately What Interest Rate Is Needed to Double

question 128

Multiple Choice

Rule of 72 Approximately what interest rate is needed to double an investment over eight years?

• A)8 percent
• B)9 percent
• C)12 percent
• D)100 percent

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Definitions:

Cash Flows

The overall volume of funds moving into and exiting a firm, which is crucial for its liquidity status.

Sale of Old Equipment

The process of disposing of outmoded or surplus equipment, typically to free up space or raise funds.

Cash Inflow

The total amount of money being transferred into a business, from operations, investments, or financing activities.

Existing Structure

The current organization or arrangement of a company's capital, operations, or physical layout.