Suppose the world demand for iron is about 420,000,000 tons per year. The known global reserves are 100,000,000,000 tons. The demand for iron is increasing at a rate of 1.8%. What is the exponential reserve for iron?

Question

Quizplus · Accepted Answer

The exponential reserve is calculated by dividing the known reserves by the annual demand and adjusting for the growth rate. Using the formula: Reserve / (Demand * (1 + growth rate)), we get 100,000,000,000 / (420,000,000 * 1.018) ≈ 93.3 years.

Suppose the World Demand for Iron Is About 420,000,000 Tons