Suppose that Country A and Country B each had the same per capita real Gross Domestic Product (GDP)of $10,000 in 2008. Country A's per capital real Gross Domestic Product (GDP)had a growth rate of 3 percent per year and Country B's per capital real Gross Domestic Product (GDP)had a growth rate of 4 percent per year. By 2013, the per-capita real Gross Domestic Product (GDP)for the two countries, respectively, were
A)$11,941 and $12,653.
B)$11,593 and $12,167.
C)$10,300 and $10,400.
D)$14,000 and $16,000.

Question

Quizplus · Accepted Answer

To solve this problem, we can use the formula for compound interest:

A = P * (1 + r)^n

where A is the final amount, P is the initial amount, r is the growth rate, and n is the number of years.

For Country A, we have:

A = $10,000 * (1 + 0.03)^5 = $11,593.08

For Country B, we have:

A = $10,000 * (1 + 0.04)^5 = $12,167.10

Therefore, the answer is B: $11,593 and $12,167.

Suppose That Country a and Country B Each Had the Same