EVERYDAY SCIENCE

Detailed explanation-1: -The number of years it takes for a country’s economy to double in size is equal to 70 divided by the growth rate, in percent. For example, if an economy grows at 1% per year, it will take 70 / 1 = 70 years for the size of that economy to double.

Detailed explanation-2: -Definition and Examples of the Rule of 70 To calculate the doubling time, the investor would simply divide 70 by the annual rate of return. Here’s an example: At a 4% growth rate, it would take 17.5 years for a portfolio to double (70/4) At a 7% growth rate, it would take 10 years to double (70/7)

Detailed explanation-3: -We can find the doubling time for a population undergoing exponential growth by using the Rule of 70. To do this, we divide 70 by the growth rate (r). Note: growth rate (r) must be entered as a percentage and not a decimal fraction.

Detailed explanation-4: -Divide your growth rate by 70 to determine the amount of time it will take for your investment to double. For example, if your mutual fund has a three percent growth rate, divide 70 by three. Thus, the doubling time is 23.33 years because 70 divided by three is 23.33.

Detailed explanation-5: -The reason why the rule of 70 is popular in finance is because it offers a simple way to manage complicated exponential growth. It breaks down growth formulas into a simple equation using the number 70 alongside the rate of return.