Suppose the small country of Trantor has a steady growth rate of 2.5 percent.Its GDP is expected to double in
A)70 years.
B)5 years.
C)2.5 years.
D)28 years.

Question

Quizplus · Accepted Answer

To calculate how long it will take for Trantor's GDP to double, we can use the Rule of 72. This rule states that dividing 72 by the annual growth rate will give us the number of years it takes for a quantity to double.

So, in this case, we divide 72 by 2.5 to get:

72/2.5 = 28.8

Therefore, it will take approximately 28 years for Trantor's GDP to double. The closest answer choice is D.

Suppose the Small Country of Trantor Has a Steady Growth