Question

The consumption of electricity in one area has increased historically at 7% per year. If it continues to increase at this rate indefinitely ,find the number of years before the electricity utility would to double the amount of generation capacity

Answer 1

Answer: 10.3 years

Explanation:

To solve this you can use the Rule of 72.

This rule enables us to find out the amount of time it would take for a quantity to double if it is growing at a certain rate.

Formula is:

= 72 / Interest rate as whole number

= 72 / 7

= 10.3 years