To calculate the doubling time:
\[ T = \frac{70}{r} \]
Where:
The Rule of 70 Doubling Time is a simple formula used in finance and economics to estimate how long it will take for an investment or quantity to double in value given a fixed annual growth rate. The formula states that you can approximate the doubling time by dividing 70 by the annual growth rate expressed as a percentage. For example, if the growth rate is 7%, the doubling time is approximately 10 years (70 divided by 7).
Let's assume the following growth rate:
Using the formula:
\[ T = \frac{70}{5} = 14 \text{ years} \]
The doubling time is approximately 14 years.
