At an inflation rate of 9 percent, the purchasing power of R1 would be cut in half in 8.04 years.How long to the nearest year would it take the purchasing power of R1 to be cut in half if the inflation rate were only 4%?

Question

Quizplus · Accepted Answer

Using the Rule of 72, we can determine that it would take approximately 8 years for the purchasing power of R1 to be cut in half at an inflation rate of 9%: 
72/9 = 8
To find out how long it would take at an inflation rate of 4%, we can use the same formula: 
72/4 = 18
Therefore, it would take approximately 18 years (rounded to the nearest year) for the purchasing power of R1 to be cut in half at an inflation rate of 4%. Thus, the best choice is C.

At an Inflation Rate of 9 Percent, the Purchasing Power