Nancy Would Like to Double the Money in Her Retirement

question 165

Multiple Choice

Nancy would like to double the money in her retirement account in five years.According to the rule of 70,what rate of interest would she need to earn to attain her objective?

• A)5 percent
• B)7 percent
• C)10 percent
• D)14 percent

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Definitions:

Economic Analysis

The systematic approach to determining the most efficient and effective use of resources, often involving quantitative methods.

Monopolistic Competition

A commercial ecosystem where a plethora of firms sell goods that are closely similar but not duplicate, allowing them a certain sway over market dynamics.

Complexity

The state or quality of being intricate or complicated, often referring to systems with multiple interdependent parts.

Monopolistically Competitive

A market structure in which many companies sell products that are similar but not identical, allowing for competition based on quality, price, and marketing.