The president of the World Bank is on his way to a meeting with the president of Uruguay. He bumps into you in the hallway and wants to know how long it will take for Uruguayan per capita GDP to double. All he knows is that the average growth rate has been about 1 percent. You quickly tell him it will take about ________ years because you know ________.
A) 60; the rule of 60
B) 7; the rule of 70
C) 700; percent change
D) 70; the rule of 70
E) 1; exponential growth

Question

Quizplus · Accepted Answer

The rule of 70 states that the number of years it takes for a variable to double is approximately equal to 70 divided by the annual growth rate. In this case, 70 divided by 1 percent is 70, so it will take about 70 years for Uruguayan per capita GDP to double.

The President of the World Bank Is on His Way