Economics - Exponential and Logarithmic Functions
The rule-of-70 provides a simple way to calculate the approximate number of years it takes for the level of a variable growing at a constant rate to double. The rule states that if the constant growth rate is r, the variable will double after approximately n years when n = 70/ r.
a) Explain how this rule can be derived.
b) State and derive the corresponding rule-of-x, the approximate number of years it takes for a variable growing at a constant rate to treble.© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/math/algebra/economics-exponential-and-logarithmic-functions-3eee