The Rule of 70 States That If Y_t Grows at a Rate

question 34

Multiple Choice

The rule of 70 states that if y_t grows at a rate of g percent per year, then the number of years it takes y_t to:

• A) double is approximately equal to 70/g.
• B) double is exactly equal to 70/g.
• C) double is approximately equal to g/70.
• D) triple is approximately equal to 70/g.
• E) double is approximately equal to 70/(1 +g).

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Definitions:

Debts

Money that is owed or due, typically resulting from borrowing funds or purchasing goods and services on credit.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Income Statement

A financial document that reports a company's revenues, expenses, and profit over a specific period, showing its financial performance.

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity, operations, and financial health.