Answer:
B) 2.19 %
Step-by-step explanation:
The rule of 70 is used to estimate the time (in years) it takes for an investment to double.
Rule of 70 Formula
[tex]\textsf{Number of Years to Double}=\sf \dfrac{70}{\textsf{Annual Growth Rate}}[/tex]
Given:
- Number of Years to Double = 32
Substituting this into the formula and solving
[tex]\implies \sf 32=\sf \dfrac{70}{\textsf{Annual Growth Rate}}[/tex]
[tex]\implies \textsf{Annual Growth Rate}=\sf \dfrac{70}{32}[/tex]
[tex]\implies \textsf{Annual Growth Rate}=\sf 2.1875[/tex]
[tex]\implies \textsf{Annual Growth Rate}=\sf 2.19 \% \: (nearest\:hundredth)[/tex]
