-Refer to the above table. How long would it take for a country to triple its GDP if the GDP grew at a 20 percent rate?
A) 2 years
B) 4 years
C) 6 years
D) 10 years

Question

-Refer to the above table. How long would it take for a country to triple its GDP if the GDP grew at a 20 percent rate?
A) 2 years 
B) 4 years 
C) 6 years 
D) 10 years

Quizplus · Accepted Answer

Using the Rule of 70, which estimates the doubling time of an investment or GDP, we calculate the tripling time by adjusting the formula. For a 20% growth rate, the doubling time is 70/20 = 3.5 years. To triple, it takes approximately 1.5 times the doubling time, which is 3.5 * 1.5 = 5.25 years, rounded to 6 years.

-Refer to the Above Table