Concept explainers
RULE OF 70 The rule of 70 is a rule of thumb for estimating the doubling time of a quantity (e.g., investment, GDP, population) experiencing growth that is compounded continuously. The rule states that if the growth rate is
a. Use the rule of 70 to estimate the time it takes for an investment to double in value if it grows at the rate of 10% per year compounded continuously.
b. What is the exact time it will take for the investment in part (a) to double in value? (Round your answer to two decimal places.)
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Finite Mathematics for the Managerial, Life, and Social Sciences
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