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:

Contingent Liability

A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

AASB 137

refers to an Australian accounting standard concerning the recognition and measurement of provisions, contingent liabilities, and contingent assets.

Financial Effect

The impact of financial transactions and events on the financial statements of an organization, altering its financial condition or performance.

Uncertainties

Situations or elements with unpredictable outcomes, often affecting decision-making and planning in business and science.