If the rate of inflation is 4% per year, how long will it take for prices to double?

To answer this question, we need to use the concept of the Rule of 70, which is a simple formula used to estimate the time it takes for a variable to double when it grows at a fixed rate.

The Rule of 70 is calculated by dividing the number 70 by the growth rate. In this case, the growth rate is the rate of inflation, which is 4%.

So, by applying the Rule of 70, we divide 70 by 4 to get an estimate of how long it will take for prices to double.

70 / 4 = 17.5

Therefore, it would take approximately 17.5 years for prices to double with an inflation rate of 4% per year.