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If a country's GDP grows at a rate of 3.5% per year, approximately how many years will it take for the GDP to double, according to the Rule of 70?

1. About 7 years
2. About 14 years
3. About 20 years
4. About 35 years



Answer :

GinnyAnswer
To determine how many years it will take for a country's GDP to double when it grows at a rate of 3.5% per year, we can use the Rule of 70. The Rule of 70 is a simple way to estimate the number of years required for a quantity to double given a fixed annual growth rate.

The formula for the Rule of 70 is:
[tex]\[ \text{Doubling Time} = \frac{70}{\text{Growth Rate}} \][/tex]

Here, the growth rate is given as 3.5% per year. Plugging this into the formula, we get:
[tex]\[ \text{Doubling Time} = \frac{70}{3.5} \][/tex]

When we calculate this, we find:
[tex]\[ \text{Doubling Time} = 20 \][/tex]

Therefore, it will take approximately 20 years for the GDP to double at an annual growth rate of 3.5%.

So, the correct answer is:
3. About 20 years

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