Questions: Multiple Choice Question The rule of 72 : is useful to determine capital accumulation rates. is an accurate calculation of the years needed to double. does not provide answers that are 100% accurate related to the years needed to double. is so inaccurate it is rarely used.

The answer is the third one: does not provide answers that are 100% accurate related to the years needed to double.

Explanation for each option:

1. The rule of 72 is useful to determine capital accumulation rates.

   • This statement is somewhat misleading. The Rule of 72 is specifically used to estimate the number of years required to double an investment at a fixed annual rate of interest. It is not directly used to determine capital accumulation rates, although it can be related to understanding growth over time.

2. The rule of 72 is an accurate calculation of the years needed to double.

   • This statement is incorrect. The Rule of 72 is an approximation, not an exact calculation. It provides a quick and easy way to estimate the doubling time, but it is not perfectly accurate.

3. The rule of 72 does not provide answers that are 100% accurate related to the years needed to double.

   • This statement is correct. The Rule of 72 is a rule of thumb that gives a close approximation, but it is not 100% accurate. The actual doubling time can vary slightly depending on the exact interest rate.

4. The rule of 72 is so inaccurate it is rarely used.

   • This statement is incorrect. Despite its inaccuracy, the Rule of 72 is widely used because it provides a simple and quick way to estimate doubling time, which is often sufficient for practical purposes.

In summary, the Rule of 72 is a useful approximation tool, but it does not provide perfectly accurate results.