If inflation in a country consistently averages 3 percent a year, prices will double in

Question

Quizplus · Accepted Answer

The rule of 72 states that to find the number of years it takes for a certain amount to double at a given rate of interest (or inflation), you divide 72 by the interest (or inflation) rate. Therefore, 72 divided by 3 (percent) equals 24 years. Therefore, prices will double in 24 years if inflation consistently averages 3 percent per year.

If Inflation in a Country Consistently Averages 3 Percent a Year