Twenty Years Ago,Dr

question 68

Multiple Choice

Twenty years ago,Dr.Montgomery borrowed money from her parents to pay her tuition at graduate school.Now she wants to pay them back.She gives them double what they gave her.According to the rule of 70,what interest rate would have given her parents the same amount of money if they had put it in the bank rather than lending it to their daughter?

• A)3.5 percent
• B)4.5 percent
• C)5 percent
• D)7 percent

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Definitions:

Health Care Costs

The expenses associated with medical treatment, including the costs of hospitalization, medications, preventive care, and medical devices.

Per Capita GDP

Gross Domestic Product per person, a measure comparing the economic output of a country relative to its population size.

Personal Disposable Income

Personal disposable income is the amount of money that households have available for spending and saving after income taxes have been accounted for.

Savings

Money set aside for future use rather than spent immediately, often in a bank or other financial institution.