Growthland's real GDP per person was $112,000 in 2013 and $117,000 in 2014. What is the growth rate of Growthland's real GDP per person in 2014?

Question

Quizplus · Accepted Answer

The growth rate of real GDP per person in 2014 can be calculated using the following formula:

Growth rate = ((Final value / Initial value) - 1) x 100%

Plugging in the values:

Growth rate = (($117,000 / $112,000) - 1) x 100%
Growth rate = (1.0446 - 1) x 100%
Growth rate = 0.0446 x 100%
Growth rate = 4.46%

Rounding off to one decimal place, the growth rate of Growthland's real GDP per person in 2014 is 4.5 percent, which is the closest to option B.

Growthland's Real GDP Per Person Was $112,000 in 2013 and $117,000