Solve the problem.
-Use the rule of 70 to estimate the annual inflation rate (to the nearest tenth of a percent)that would cause the general level of prices to double in 28 years.

Question

Quizplus · Accepted Answer

The rule of 70 is a way to estimate the number of years it takes for a quantity to double given a constant annual growth rate. It states that dividing 70 by the number of years it takes for the quantity to double gives the annual growth rate. In this case, dividing 70 by 28 years gives 2.5%, which is the annual inflation rate needed for prices to double in that time frame.

Solve the Problem. -Use the Rule of 70 to Estimate the Annual Inflation