Question

To estimate the number of years it takes a variable to double, we can use the rule of 70 or the rule of 72. It is best to use the rule of 72 if: a. The annual growth rate (percentage change) is 5% or larger. b. The annual growth rate is less than 5%. c. The annual growth rate is larger than 10%. d. The annual growth rate is less than 4%.

Name: to estimate the number of years it takes a variable to double we can use the rule of 70 or the rule of 72 it is best to use the rule of 72 if a the annual growth rate percentage change is 5 65099
Uploaded: 2020-04-13T02:08:07-08:00
Duration: 45 s
Channel: Amrita Bhasin
Description: to estimate the number of years it takes a variable to double we can use the rule of 70 or the rule of 72 it is best to use the rule of 72 if a the annual growth rate percentage change is 5 65099

          To estimate the number of years it takes a variable to double, we can use the rule of 70 or the rule of 72. It is best to use the rule of 72 if:

a. The annual growth rate (percentage change) is 5% or larger.
b. The annual growth rate is less than 5%.
c. The annual growth rate is larger than 10%.
d. The annual growth rate is less than 4%.

Added by Catalina G.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

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Solved by Expert Amrita Bhasin

04/13/2020

Step 1

- The rule of 70 and the rule of 72 are both methods used to estimate the number of years it takes for a variable to double. - The rule of 70 states that you divide 70 by the annual growth rate (as a percentage) to get the approximate number of years it takes for Show more…

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To estimate the number of years it takes a variable to double, we can use the rule of 70 or the rule of 72. It is best to use the rule of 72 if: a. The annual growth rate (percentage change) is 5% or larger. b. The annual growth rate is less than 5%. c. The annual growth rate is larger than 10%. d. The annual growth rate is less than 4%.