How long would it take for the price level to double if inflation persisted at the following percentages?

inflation rate = 17.5 percent per year ⇒ it will take 4 years to double

inflation rate = 35 percent per year ⇒ it will take 2 years to double

inflation rate = 3.5 percent per year ⇒ it will take 20 years to double

Explanation:

we can use the rule of 70 to determine the amount of time it would take the general price level to double.

the rule of 70 is a simple way we can use to estimate the number of years it will take an investment to double given a certain growth rate.

70 / 17.5 = 4 years

70 / 35 = 2 years

70 / 3.5 = 20 years