If, between 2007 and 2017, the economy's real GDP grew from $20 billion to $40 billion, the average growth rate in the economy was

Question

Quizplus · Accepted Answer

The average growth rate can be calculated using the formula:
[(Final GDP/Initial GDP)^(1/Number of Years)] - 1. 
Substituting the given values in the formula, we get:
[(40/20)^(1/10)] - 1 = 0.072 or 7.2%. Rounding off to the nearest whole number, the average growth rate is 7%.

If, Between 2007 and 2017, the Economy's Real GDP Grew