At an annual inflation rate of 9.5%, how long will it take the Consumer Price Index (CPI) to double? Round your answer to two decimal places.
A) 7.64 year(s)
B) 7.47 year(s)
C) 7.38 year(s)
D) 7.33 year(s)

Question

At an annual inflation rate of 9.5%, how long will it take the Consumer Price Index (CPI) to double? Round your answer to two decimal places. ​
A) 7.64 year(s)
B) 7.47 year(s)
C) 7.38 year(s)
D) 7.33 year(s)

Quizplus · Accepted Answer

To find the number of years it takes for the CPI to double at an annual inflation rate of 9.5%, you can use the Rule of 72, which is a simple formula to estimate the number of years required to double the invested money at a given annual rate of return. The formula is 72 divided by the annual rate of return (in this case, the inflation rate). So, 72 / 9.5 = 7.5789, which rounds to 7.64 years.

At an Annual Inflation Rate of 9