Using the rule of 70, calculate how many years it would take for John's income to double if he were to experience a 4 per cent increase in income per year.
A) 22 years
B) 17.5 years
C) 5.5 years
D) 25 years

Question

Using the rule of 70, calculate how many years it would take for John's income to double if he were to experience a 4 per cent increase in income per year. 
A) 22 years
B) 17.5 years
C) 5.5 years
D) 25 years

Quizplus · Accepted Answer

The rule of 70 states that you can estimate the number of years for a variable to double by dividing 70 by the rate of growth.  
So, in this case, 70/4 = 17.5 years for John's income to double.

Using the Rule of 70, Calculate How Many Years It