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what annual growth rate is needed for a country to double its output in 7 years? in 35 years? in 70 years? in 140 years? lo8.1

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Final answer:

The annual growth rates needed for a country to double its output in different time frames can be estimated using the rule of 72. For 7 years, it's approximately 10.29%; for 35 years, about 2.06%; for 70 years, 1.03%; and for 140 years, 0.51%.

Step-by-step explanation:

To determine the annual growth rate needed for a country to double its output in a certain number of years, we can use the rule of 72. This rule is a simple way to estimate the number of years needed to double an investment at a given annual fixed compounded interest rate. By dividing 72 by the number of years we wish to double the output, we can find the required growth rate.

  • To double in 7 years: Required growth rate = 72 / 7 ≈ 10.29%
  • To double in 35 years: Required growth rate = 72 / 35 ≈ 2.06%
  • To double in 70 years: Required growth rate = 72 / 70 ≈ 1.03%
  • To double in 140 years: Required growth rate = 72 / 140 ≈ 0.51%

The rule of 72 provides an approximation and assumes a stable growth rate compounded annually.

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