ANSWER:
A) 3.5%
N = 72 / 3.5 = 20.6 YEARS
B) 1.5%
N = 72 / 1.5 = 48 YEARS
C) 6.5%
N = 72 / 6.5 = 11.1 YEARS
Small differences in annual growth rates cumulate into large differences in GDP. Shown here are the...
The Rule of 72 Small differences in annual growth rates cumulate into large differences in GDP. Shown here are the number of years it would take to double GDP at various growth rates. Doubling times can be approximated by the rule of 72. Seventy-two divided by the growth rate equals the number of years it takes to double. Growth Rate Doubling Time (percent) (years) Never 144.0 72.0 48.0 36.0 20.6 20.6 18.0 16.0 14.4 13.1 12.0 11.1 China's output grew...
A nation’s average annual real GDP growth rate is 5%. Based on the "rule of 72," the approximate number of years that it would take for this nation’s real GDP to double is 14.4 years. 12.5 years. 16.2 years. 10 years.
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...