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Chapter 32: Q 32. (page 763)

Use the Rule of 72 to estimate how long it will take for India, Spain, and South Africa to double their standards of living.

Short Answer

Expert verified

India - 13.11 years, Spain - 25.17 years, South Africa - 1,200 years

Step by step solution

01

Step 1. Introduction 

The rule of 72 is a rule of thumb used to estimate the approximate time it would take a variable to double its value. It is generally used to estimate the expected time for an investment to double in value. Though it can also be used for other economic indicators.

02

Step 2. Explanation

The estimated time to double the standards of living can be obtained as,

Estimate Time=72GDP per capita growthForindia=725.49=13.11Forspain=722.86=25.17ForSouthAfrica=720.06=1200

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