If real income grows at approximately 4 percent per year, the number of years it will take for real income to double is approximately

Question

Quizplus · Accepted Answer

The rule of 70 states that to find the approximate number of years it takes for a variable to double, divide the number 70 by the annual growth rate of the variable. So, 70/4 = 17.5, which rounds up to 18. Therefore, it will take approximately 18 years for real income to double.

If Real Income Grows at Approximately 4 Percent Per Year