The rule of 70 states that if y_t grows at a rate of g percent per year, then the number of years it takes y_t to: A) double is approximately equal to 70/g. B) double is exactly equal to 70/g. C) double is approximately equal to g/70. D) triple is approximately equal to 70/g. E) double is approximately equal to 70/(1 +g).

Question

Quizplus · Accepted Answer

The rule of 70 is an approximate rule used to estimate how long it will take for a quantity to double in size given a constant annual growth rate. The formula is simply: number of years to double = 70/g, where g is the annual growth rate expressed as a percentage. Therefore, the best choice is A, as it correctly states that the number of years it takes for y_t to double is approximately equal to 70/g.

The Rule of 70 States That If Yt Grows at a Rate

The Rule of 70 States That If Y_t Grows at a Rate