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,what will Ohio's GDP per capita be in 2005 (to the nearest thousand)?

Question

Quizplus · Accepted Answer

To find out Ohio's GDP per capita in 2005, we need to calculate the increase in GDP per capita for five years.

Firstly, we need to calculate the total percentage increase in GDP per capita over five years:

3% increase per year x 5 years = 15% total increase

We can calculate the new GDP per capita in 2005 as follows:

New GDP per capita = Old GDP per capita + (Total increase in GDP per capita x Old GDP per capita)

New GDP per capita = $35,000 + (0.15 x $35,000)

New GDP per capita = $35,000 + $5,250

New GDP per capita = $40,250

Rounding this to the nearest thousand, we get $41,000, which is option C.

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