Rule of 70 | Marginal Revolution University
Rule of 70 | Marginal Revolution University
Sep 1, 2012
mru.org
SOLVED:(a) There is a trick, called the Rule of 70, that can be used to get a quick estimate of the doubling time or half-life of an exponential model. According to this rule, the doubling time or half-life is roughly 70 divided by the percentage growth or decay rate. For example, we showed in Example 5 that with a continued growth rate of 1.33 % per year the world population would double every 52 years. This result agrees with the Rule of 70 , since 70 / 1.33 ≈52.6 Explain why this rule works.
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