Consider the following graph:
What is the interest rate per period?

Question

Consider the following graph: 
What is the interest rate per period?

Quizplus · Accepted Answer

Looking at the graph, we can see that the starting balance is $1000 and the ending balance is $2000 after 10 periods. Therefore, the investment has doubled in 10 periods.
To calculate the interest rate per period, we can use the Rule of 72 formula, which is:
Number of periods = 72 / interest rate (in percent)
Using the given information, we can plug in the values as follows:
10 = 72 / interest rate (in percent)
Solving for the interest rate (in percent), we get:
interest rate (in percent) = 72 / 10 = 7.2%
Therefore, the closest answer choice is B, which is 7.14%.

Consider the Following Graph