According to the constant growth rate rule, if a variable starts at some initial

Question

According to the constant growth rate rule, if a variable starts at some initial value yo at t - 0 and grows at +at a constant rate&then the value of the variable in three periods is given by -yo- @by,-3%(1- ) QUESTION 13 The rule of 70 states that a.ifyt grows at a rate of g percent per year, then the number of years it takes yt to double is approximately equal to g 70 b. if yt grows at a rate of g percent per year, then the number of years it takes yt to double is approximately equal to 70/1 .ifyt grows at a rate of g percent per year, then the number of years it takes yt to double is approximately equal to 70/g o d. if yt grows at a rate of g percent per year, then the number of years it takes yt to triple is approximately equal to 70/g .ifyt grows at a rate of g percent per year, then the number of years it takes yt to double is exactly equal to 70/g g)

Explanation / Answer

Growth rate: yt= y0(1+g)t.

The value of the variable in three periods is given by y3= y0 (1+g)3.

Hence, option(A) is correct.

The rule of 70 states that if yt grows at a rate of g percent per year ,then the number of years it takes yt to double is approximately equal to 70/g. Hence, option(C) is correct.

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