ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rule of 70
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Rule of Increasing Returns
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Rule of Variable Growth
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Rule of Annual Returns
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Detailed explanation-1: -The Rule of 70 tells us that the time it takes a variable that grows gradually over time to double is approximately 70 divided by that variable’s annual growth rate.
Detailed explanation-2: -Explanation of the Rule of 70 The formula is as follows: Take the number 70 and divide it by the growth rate. The result is the number of years required to double. For example, if your population is growing at 2%, divide 70 by 2. The result is 35; it will take 35 years for your population to double at a 2% growth rate.
Detailed explanation-3: -Using the Rule of 70 If an economy grows at 2 percent per year, it will take 70/2=35 years for the size of that economy to double. If an economy grows at 7 percent per year, it will take 70/7=10 years for the size of that economy to double, and so on.
Detailed explanation-4: -2) Rule of 70 Divide 70 by current inflation rate to know how fast the value of your investment will get reduced to half its present value. Inflation rate of 7% will reduce the value of your money to half in 10 years.
Detailed explanation-5: -A mathematical approximation called the rule of 70 tells us how long it. will take for something to double in size if it grows at a constant rate. The. doubling time is approximately equal to the number 70 divided by the percentage.