Question

For which growth rate would the Rule of 70 be least accurate?

A.

1%.

B.

15%.

C.

20%.

D.

30%.

Answer 1

The rule of 70 is defined as a tools of calculating the number of years it takes for an investment to double. In other words rule of 70 is a calculation to find how many years it'll take for any money to double at specified rate.

At 0.7% growth rate, it will take 100 years.

At 1% growth rate, it will take 70 years.

At 4% growth rate, it will take 17.5 years.

At 2% growth rate, it will take 35 years.

Hence 30% growth rate would the Rule of 70 be least accurate because 30% is farthest from the given growth rate of rule 70.

Hence option D is the correct answer.