Using the rule of 72, calculate the average annual growth rate of GDP needed for a country to double its size in just four years?

Question

Quizplus · Accepted Answer

The Rule of 72 states that dividing the number 72 by the annual growth rate of an investment or economy will give us the number of years it will take for the investment or economy to double.

Therefore, in this question, we need to divide 72 by the number of years we want the economy to double, which is 4 years. This gives us 18.

So, the average annual growth rate needed for a country to double its size in just four years is 18 percent. Therefore, the best choice is option C.

Using the Rule of 72, Calculate the Average Annual Growth