GDP in the United States was $14,119 billion in 2009, and grew to $14,660.4 billion in 2010. This represents an annual growth rate of:
A) $541.4 billion.
B) 1.04%.
C) 3.7%.
D) 3.8%.

Question

Quizplus · Accepted Answer

To calculate the annual growth rate, we use the formula: ((ending value / beginning value)^(1/number of years)) - 1

Plugging in the values, we get: ((14,660.4 / 14,119)^(1/1)) - 1 = 3.8%

Therefore, the correct answer is D.

GDP in the United States Was $14,119 Billion in 2009