Suppose Botswana doubles its income in 8 years,while South Africa doubles its income in 12 years.According to the Rule of 72,the growth rate in Botswana

Question

Quizplus · Accepted Answer

According to the Rule of 72, the number of years it takes for an investment to double is approximately 72 divided by the annual growth rate. So, for Botswana:

72/growth rate = 8 years

Solving for growth rate:

growth rate = 72/8 = 9%

Similarly, for South Africa:

72/growth rate = 12 years

Solving for growth rate:

growth rate = 72/12 = 6%

The difference in growth rates between Botswana and South Africa is:

9% - 6% = 3%

Therefore, the answer is A - the growth rate in Botswana is 3 percentage points higher than the growth rate in South Africa.

Suppose Botswana Doubles Its Income in 8 Years,while South Africa