If real GDP per capita in the United States is $8,000,what will real GDP per capita in the United States be after 5 years if real GDP per capita grows at an annual rate of 3.2%?
A)$8,520
B)$9,280
C)$9,365
D)$10,560

Question

Quizplus · Accepted Answer

Using the formula for calculating the future value of a present amount, we have:

FV = PV x (1 + r)^n

where FV is the future value, PV is the present value, r is the annual growth rate, and n is the number of years.

Plugging in the values given in the question, we get:

FV = $8,000 x (1 + 0.032)^5
FV = $8,000 x 1.176
FV = $9,408

However, we need to find the future value per capita, so we need to divide this amount by the population. Assuming a population of 328 million for the US, we get:

FV per capita = $9,408 / 328,000,000
FV per capita ≈ $28.63

Therefore, the answer that is closest is C, $9,365.

If Real GDP Per Capita in the United States Is