According to Rule of 72, how much time will it take the prices to double at the inflation rate of 4 percent?

six years

nine years

twelve years

eighteen years

Respuesta :

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The correct answer is: "eighteen years"

The Rule of 72 is a mechanism that determines the amount of time that an investment will take to double, at a fixed interest rate. 72 is divided between the annual rate of return and the resulting figure yields a rough estimate that forecasts how many years it will take for the initial investment to duplicate.

72/4= 18 years. The investment will take 18 years to duplicate.