In Your First Year Out of College You Hope to Earn

Multiple Choice

In your first year out of college you hope to earn $50,000 per year. How many years will you have to work until you earn $100,000 if your income increases at a rate of 10% per year? Use the Rule of 72 to determine your answer.

A) You would need to work for just over 5 years to reach an income level of $100,000 per year.
B) You would need to work for just over 6 years to reach an income level of $100,000 per year.
C) You would need to work for just over 7 years to reach an income level of $100,000 per year.
D) You would need to work for just over 8 years to reach an income level of $100,000 per year.