A mathematical approximation called the Rule of 70 tells us that the number of years it will take something that is growing to double in size is approximately equal to the number 70 divided by its...

Q24

Extracted text: A mathematical approximation called the Rule of 70 tells us that the number of years it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. For example, if Mexico's real GDP per person is growing at 7 percent per year, it will take about 10 years (= 70 ÷ 7) to double. 24 Apply the Rule of 70 to solve the following problem. If real GDP per person in Mexico was $12,000 in 2008, while it was $48,000 per person in Canada, and if real GDP per person in Mexico grows at a rate of 5 percent per year, how long will it take Mexico's real GDP per person to reach the level that Canada was at in 2008? (Hint: How many times would Mexico's 2008 real GDP per person have to double in order to reach Canada's 2008 real GDP per person?) years