Scenario: In 2000, the GDP per capita in Ohio is $35,000. Ohio's GDP per capita is predicted to increase 3 percent per year for the next 5 years.
-Refer to the scenario above.If the prediction in the scenario is correct,by approximately what percentage will Ohio's GDP per capita rise in 2005?

Question

Quizplus · Accepted Answer

To calculate the percentage increase in Ohio's GDP per capita from 2000 to 2005, we need to use the formula:
Percentage increase = ((Final value - Initial value) / Initial value) x 100%
Using this formula, we can calculate the final value of Ohio's GDP per capita in 2005 as:
Final value = $35,000 x (1 + 0.03)^5 = $41,201.67 (rounded to the nearest cent).
Therefore, the percentage increase in Ohio's GDP per capita from 2000 to 2005 is:
((41,201.67 - 35,000) / 35,000) x 100% = 17.72% (rounded to two decimal places).
Therefore, the best choice is B, 16 percent.

Scenario: in 2000, the GDP Per Capita in Ohio Is