Question

14. The Rule of 70 would be most accurate for estimating the doubling time in which of the following situatio the growth rate is steady at 15% the growth rate is variable but averages 4% the growth rate is steady at 4% the growth rate is variable but averages 15%

14. The Rule of 70 would be most accurate for estimating the doubling time in which of the following situations? the growth rate is steady at 15% the growth rate is variable but averages 4% the growth rate is steady at 4% the growth rate is variable but averages 15%

Answer 1

By the rule of 70 the amount will double

When rate = 15%

Amount will double = 70 / 15 = 4.66 years

When rate = 4%

Amount will double = 70 / 4 = 17.5 years

The amount will double in actual, rate = 15%

log(2) Time = log(1 151 = 4.96 years

When rate is 4%

Time = log(2) . = 17.67 years log(1.04)

Therefore, as per the rule of 70 most accurate estimate the doubling time the growth rate steady rate at 4%.

As per difference I have concluded that at 4% the rule of 70 most accurately estimate doubling time.

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