The Rule of 70 States That

question 286

Multiple Choice

The rule of 70 states that:

• A) the average score on standardized tests is normally distributed with a mean of 70 and a standard deviation of 10.
• B) everyone should retire by age 70.
• C) the number of years for a variable to double equals 70 divided by its annual growth rate.
• D) Pension benefits should increase when people reach 70.

---

Definitions:

Intangible Benefits

Non-quantifiable advantages or value derived from a project, service, or product, such as brand recognition or customer loyalty.

Financially Attractive

A term used to describe investments or projects that are expected to yield a good financial return.

Discount Rate

The interest rate charged by central banks for lending money to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Project Profitability Index

A financial metric that calculates the ratio between the present value of future cash flows and the initial investment of the project.