Using the rule of 72,determine how long it would take for real GDP to double if it grew at a constant growth rate of 8 percent.
A)576 years.
B)72 years.
C)8 years.
D)9 years.

Question

Quizplus · Accepted Answer

The rule of 72 is a simple formula to estimate the number of years required to double the value of an investment at a fixed annual rate of return. By dividing 72 by the annual rate of return, you get the approximate number of years for doubling. In this case, 72 divided by 8 equals 9 years.

Using the Rule of 72,determine How Long It Would Take