The rule of 72 implies that a country with a growth rate of 2 percent:
A)will never double its income.
B)will double its income in about 7 years.
C)will double its income in about 36 years.
D)will double its income in about 50 years.

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 growth rate of 2 percent gives 36 years.

The Rule of 72 Implies That a Country with a Growth