Solve the problem.
-How long will it take for prices in the economy to double at a 9% annual inflation rate? (Round to the nearest year.)
A) 8 yr
B) 23 yr
C) 13 yr
D) 7 yr

Question

Quizplus · Accepted Answer

The Rule of 72 is a simple way to estimate the number of years required to double the investment at a given annual rate of return. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself. In this case, dividing 72 by the annual inflation rate of 9% gives 8 years (72 / 9 = 8).

Solve the Problem. -How Long Will It Take for Prices in the Economy