The Rule of 72

question 47

Multiple Choice

The Rule of 72

• A) can be used to determine the amount of time it takes to double an investment.
• B) is fairly accurate for interest rates between 25 and 50 percent.
• C) states that the time to double your money (TDM) approximately equals 72/i, where 72 represents the years it takes to double your investment.
• D) None of the above describe the Rule of 72.

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Definitions:

Pons

A part of the brainstem that plays a key role in controlling arousal, sleep, breathing, and relaying sensory information between the cerebrum and cerebellum.

Cerebellum

A part of the brain located at the back of the skull, important for coordinating movement and balance.

Reticular Formation

A complex network of nerve pathways in the brainstem that plays a key role in controlling arousal and attention.

Hippocampus

A part of the brain associated with memory formation, organization, and storage, as well as with spatial navigation.