Question
In: Economics
The so-called Rule of 70 is a formula for finding the approximate number of times that...
The so-called Rule of 70 is a formula for finding the
approximate number of times that a value will double in a period of
70 years.
True or False
Solutions
Expert Solution
The rule of 70 is defined as a tools of calculating the number of years it takes for an investment to double. In other words rule of 70 is a calculation to find how many years it'll take for any money to double at specified rate.
At 0.7% growth rate, it will take 100 years.
At 1% growth rate, it will take 70 years.
At 4% growth rate, it will take 17.5 years.
It means Rule of 70 is not a formula for finding the approximate number of times that a value will double in a period of 70 years.
Hence the given statement is false.
Rahul Sunny answered 2 years agoRelated Solutions
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