Answer:
7 years = 10.4089%, 35 years = 2%, 70 years = 0.9951%, 140 years = 0.4963%.
Explanation:
The formula for obtaining the annual growth rate in each case is
[tex]2^{\frac{1}{years} } -1[/tex]
This is because the root of the calculation is:
PBI1 * (1+rate)^years = PBI2
where PBI2 = PBI1*2
So, clearing the PBIs:
1 * (1+rate)^years = 2
THe, for each case:
- With 7 years = [tex]2^{\frac{1}{7} } -1[/tex] = 10.4089%
- With 35 years = [tex]2^{\frac{1}{35} } -1[/tex] = 2%
- With 70 years = [tex]2^{\frac{1}{70} } -1[/tex] = 0.9951%
- With 140 years = [tex]2^{\frac{1}{140} } -1[/tex] = 0.4963%
