You want your money to double within the next 12 years. Using the Rule of 72, what approximate annual rate of return do you need to earn each year for your money to double in 4 years?
A. 12%
B. 6%
C. 10%
D. 8%
Inflation represents a rise in prices over time – and that means your dollars won’t buy as much in the future. As an example, assume that the average annual inflation rate is 3.5%. Your family currently has an annual living expense of $65,000. How much money will you need in 40 years to have the equivalent lifestyle that costs $65,000 today? (End of Period)
A. $257,352
B. $65,000
c. $2,691,000
D. $16,417
