What is the doubling time associated with \(3.5 \%\) annual growth?

Short Answer

Expert verified
Answer: Approximately 20 years.

Step by step solution

01

Convert the percentage growth rate to decimals

To use the Rule of 70, it is easier to work with decimals rather than percentages. To convert \(3.5 \%\) to a decimal, divide by \(100\). \(3.5\% = \frac{3.5}{100} = 0.035\)
02

Apply the Rule of 70

Insert our decimal growth rate into the Rule of 70 formula, which is Doubing Time = \(\frac{70}{\text{Growth Rate}}\), to find the doubling time: Doubling Time = \(\frac{70}{0.035}\)
03

Calculate the answer

Divide the numerator by the denominator to obtain the doubling time: Doubling Time = \(\frac{70}{0.035} = 2000\) The doubling time associated with \(3.5\%\) annual growth is approximately 20 years.

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