An economy doubles in size every 25 years if it maintains a steady annual growth rate of about __________ percent.

Question

Quizplus · Accepted Answer

To find the annual growth rate, we can use the rule of 72, which says that the time it takes for an investment to double is approximately 72 divided by the annual growth rate. In this case, we want to know how long it takes for the economy to double, which is 25 years.

72 divided by 25 is approximately 2.88, which is closest to 2.8. Therefore, the steady annual growth rate is about 2.8 percent.

Choice B is the correct answer.

An Economy Doubles in Size Every 25 Years If It