An economy growing at a consistent rate of 5 percent per year will double its income in
A) twenty-five years.
B) twenty-one years.
C) fourteen years.
D) twelve years.

Question

Quizplus · Accepted Answer

The rule of 70 states that to find the number of years for a certain amount to double at a consistent rate, divide 70 by the growth rate. In this case, 70 divided by 5 equals 14 years. Therefore, choice C is the correct answer.

An Economy Growing at a Consistent Rate of 5 Percent