The rule of 70 can be stated as follows: A variable with a growth rate of X percent per year
a. |
doubles every 70/X years. |
|
b. |
doubles every 70(1 - 1/X) years. |
|
c. |
doubles every 70/X2 years. |
|
d. |
doubles every 70/(1 - X) years. |
Answer: A) Double Evey 70/X Years
Rule of 70 is the measure of the period (years) required to double the variable at certain growth rate. It is used as the alternative to calculating the time periods of the compound amount to be double.
Rule 70: Years to Double the variable = 70 / Growth rate = 70 / X
The rule of 70 can be stated as follows: A variable with a growth rate of...
What is the rule of 70? The rule of 70 O A. is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to quadruple. O B. is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to increase by two hundred percent. O C. is a mathematical formula that is used to calculate the...
According to the "Rule of 70", how many years will it take for real GDP per capita to double when the growth rate of real GDP per capita is 5%? A. less than 1 year B. 35 years C. 5 years D. 14 years
For which growth rate would the Rule of 70 be most accurate? A. 1%. B. 15%. C. 20%. D. 30%.
For which growth rate would the Rule of 70 be least accurate? A. 1%. B. 15%. C. 20%. D. 30%.
If the interest rate is r percent, then the rule of 70 says that your savings will double about every Question 15 options: 70(1 + r)/r years. 70/(1 + r) years. 70/(1 - r) years. 70/r years.
4. Using the rule of 70 Consider an imaginary economy that has been growing at a rate of 6% per year. Government economists have proposed a number of policies to increase the growth rate but first need to convince the president that the policies will pay off. To do so, they want to present a comparison of the number of years it will take for the economy to double, depending on the growth rate. Using the rule of 70, determine...
drag the values to the appropiate blanks
Reset Help 1. A population with an annual growth rate of 3% doubles roughly every years. 2. A population with an annual growth rate of 4% doubles roughly every years. 3. A population with an annual growth rate of 7% doubles roughly every 980 years. 1,000 4. A population that doubles in size every 14 years has a growth rate of 1,750 percent. 2,333 5. A population that doubles in size every 35...
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...
Consider an economy in a steady state with population growth rate η, a rate of capital depreciation δ , and a rate of technological progress g. a) At the steady state Δk = 0, where k equals capital per effective worker. What condition must be met for this to hold? Describe the condition in words as well as mathematical expressions. b) Describe in words what is maximized at the Golden Rule level of k. c) What mathematical condition must be...
The Rule of 70 applies in any growth rate application. Let’s say you have $1000 in savings and you have three alternatives for investing these funds. How long would it take to double your savings in each of these 3 accounts? Show your answers. • A savings account earning 1.5 % interest per year • A U.S. Treasury bond mutual fund earning 3.5% interest per year • A stock market mutual fund earning 9% interest per year