The average rate of inflation in the United States over the past 10 years has been around 2.4%. If this trend continues, prices in the United States will double in about _____ years.
A) 10
B) 18
C) 29
D) 39

Question

Quizplus · Accepted Answer

This can be calculated using the rule of 72, which states that to approximate the number of years it will take for an investment to double, you divide 72 by the annual rate of return. In this case, 72 divided by 2.4 gives us 30. Therefore, prices will double in approximately 30 years, which is closest to choice C (29 years).

The Average Rate of Inflation in the United States Over