According to the Rule of 70, If the Interest Rate

question 114

Multiple Choice

According to the rule of 70, if the interest rate on a bank deposit is 5% per year, how long will it take for the bank deposit to double in value?

• A) 25 years
• B) 20 years
• C) 14 years
• D) It depends on the amount of bank deposit.

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Definitions:

Law of Demand

A fundamental principle in economics that describes the inverse relationship between the price of a good or service and the quantity demanded by consumers, holding other factors constant.

Quantity Demanded

The aggregate quantity of a product or service buyers are prepared to buy at a certain price point, within a specific timeframe.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay, at a given price level within a specific time period.

Quantity Demanded

refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.