Suppose the annual growth rate of GDP in Nepal is 5 percent. In 35 years, GDP in Nepal will double

Question

Quizplus · Accepted Answer

Using the "Rule of 70", we can estimate the time it takes for GDP to double by dividing 70 by the annual growth rate. Therefore, in Nepal's case, it would take approximately 14 years (70 ÷ 5 = 14) for GDP to double.

Since we are looking at a time horizon of 35 years, we need to divide 35 by 14 to get the number of times GDP will double.

35 ÷ 14 = 2.5

Therefore, GDP in Nepal will double approximately 2.5 times in 35 years, which means the answer is B, 2.5 times.

Suppose the Annual Growth Rate of GDP in Nepal Is