If,between 2008 and 2018,the economy's real GDP grew from $20 billion to $40 billion,what was the average annual growth rate in the economy?

Question

Quizplus · Accepted Answer

To calculate the average annual growth rate, we can use the formula:
[(Ending Value / Beginning Value) ^ (1 / Number of Years)] - 1
Plugging in the values, we get:
[(40 / 20) ^ (1 / 10)] - 1 = 0.0718 or 7.18%
Therefore, the average annual growth rate in the economy is 7%.

If,between 2008 and 2018,the Economy's Real GDP Grew from $20