Harper earned $48,000 in 2014.If inflation was 3 percent that year and continued at that rate how long would it take for the purchasing power of that level of income to be cut in half?
A)33 years
B)24 years
C)23 years
D)3 years

Question

Quizplus · Accepted Answer

The rule of 70 is used to estimate the number of years it takes for a quantity to halve or double at a constant growth rate. By dividing 70 by the inflation rate of 3%, it takes approximately 23.33 years for the purchasing power to be cut in half, which rounds to 24 years.

Harper Earned $48,000 in 2014