Rule of 70Rule of 70 is a short-cut method of an economy’s growth accounting which tells us that if an economy’s annual growth rate is g, its output/GDP will double in 70/g years. For example, if an economy grows by 2.3% constantly, rule of 70 tells us that its total product...
When applying the rule of 70, we want to find out how many years it will take for the investment to grow to twice its size, so we can letPV=P, the amount of the initial or principal investment, andFV=2P. Also, we are assuming a compounding period of 1 year, so...
In addition, the rule of 70 applies only to amounts that have compounding growth. An example is an investment with compounding interest, which means interest is also earned on the interest added to the principal. This compounding process allows exponential growth, without which the rule of 70 w...
Rule 70There are some mathematical formulas which are used to calculate something very easily and quickly. One of these formula is called "Rule 70".Answer and Explanation: Rule of 70 is a mathematical formula that is used to calculate the number of years it takes a variable to double. In ...
Example Here’s an example table of the way a rule of 72 calculator works. As you can see, the first column represents the annual rate of investment that will be compounded at the end of every year. The second column shows the number of years it will take for the investment to double...
nor is it set in stone. Flippers may tweak the 70% rule depending on the property market and/or location. For example, if the property is in a lower-end market, an investor might adjust the rule to 65% instead of 70%. On the other hand, for a higher-end market, the 70% might ...
不啊，因为题目说的4倍是在你2010年的基础上的。by given，你的增长率一直都是10%，不是么？这是不变的，it is exogenous.so, to double the amount, 70/10=7 years(两倍)，保持10%增长，再翻上一番，公式仍然是70/10=7 years。所以是14年。
One way is to use an expanded version of the rule. For example, you could use a rhyme like “i before e, except after c, or when sounded as a, as in ‘neighbor’ and ‘weigh.'” Another tip is to practice. Write down words that follow the rule and those that don’t. Practice...
The Rule of 72 The rule of 72 is a simple method to determine the amount of time investment would take to double, given a fixed annual interest rate. To use the rule of 72, divide 72 by the annual rate of return. For example, assume an investor invests $20,000 at a 10% fixed a...
Example of the Empirical Rule Let's assume a population of animals in a zoo is known to benormally distributed. Each animal lives to be 13.1 years old on average (mean), and the standard deviation of the lifespan is 1.5 years. If someone wants to know the probability that an animal wil...