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denis-greek [22]
3 years ago
8

The Rule of 72 is: a. A tool to determine the number of years until retirement for an employee b. Used to estimate how fast pric

es will double using a given annual inflation rate c. The legal code for requiring companies to provide a match on retirement savings d. Used to calculate interest rates for savings
Business
1 answer:
Veseljchak [2.6K]3 years ago
5 0

Answer:

b. Used to estimate how fast prices will double using a given annual inflation rate

Explanation:

Rule of 72 is a fast statistical method to determine how long an investment will double given annual interest rate.

Simply divide 72 by the annual interest rate.

Alternatively it can be used to calculated annual rate of return required to double investment.

Alternatively it can be used to calculate annual rate of return required to double an investment.

For example if $1,000 is to be doubled in 5 years.

Years to double= 72/ Interest

Interest= 72/5= 14.4%

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Why do neoclassical economists tend to put relatively more emphasis on long-term growth than on fighting recession?
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8 0
2 years ago
Explicit and Implicit Costs) Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100
loris [4]

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No

Amos McCoy is earning an economic loss. His implicit cost ($200) is greater than his accounting profit ($100)

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Economic profit it accounting profit less implicit cost.

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Implicit costs are opportunity costs.

Economic profit = $100 - $200 = $-100

Amos McCoy Is making an economic loss of $-100

I hope my answer helps you.

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4 years ago
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