Question

If El Salvador has an 8% rate of growth, people at age 21 would see more than double of GDP by the time they had reached age (hint: use the rule of 72).

A. 30
B. 40
C. 50
D. 60

Answer 1

Using the rule of 72, if El Salvador has an 8% rate of growth, people at age 21 would see more than double of GDP by the time they reach age A. 30.

Step-by-step explanation:

The rule of 72 is a method to estimate how long it will take for an investment or a measure to double in value. To use the rule of 72, you divide 72 by the growth rate. In this case, we have a growth rate of 8%, so we divide 72 by 8 to get 9. This means that it will take approximately 9 years for the GDP to double.

Now let's solve the problem. If people at age 21 want to see their GDP double, we can subtract their current age from the number of years it takes for the GDP to double. In this case, we subtract 21 from 9, which gives us 30. So the answer is 30.