GDP per capita in Australia is $50,000.If Australian GDP per capita grows 6 percent per year for 2 years,which formula shows its GDP per capita after 2 years?

Question

Quizplus · Accepted Answer

GDP per capita after 1st year = $50,000 x 1.06 = $53,000
GDP per capita after 2nd year = $53,000 x 1.06 =$56,180

Therefore, the formula for GDP per capita after 2 years would be $50,000 x 1.06 x 1.06, which is option C.

GDP Per Capita in Australia Is $50,000