Question

Suppose that in 2018, Brazil's annual economic growth rate has dropped to 1.4%. Use the rule of 70 to estimate how long it would take for its real per capita GDP to double.

Answer 1

50 Years

Step-by-step explanation:

The "rule of 70" is an estimate of how many years it will take something to double given a particular interest rate. To calculate, simply divide 70 by the interest rate:

70/1.4 = 50 years

Answer 2

50 years.

Step-by-step explanation:

Rule 70 is used in finance to roughly determine the time required to double the investment. The calculation is made by dividing 70 by the percentage of interest in the period. In this case, we use the annual growth rate, 1.4, thus; 70: 1.4 = 50. This figure shows that Brazil's GDP will be doubled, maintaining growth of 1.4% per year over 50 years.