If real GDP per capita in the United States is $8,000 in 2018,and if real GDP per capita is $12,000 in 2028,what is the approximate average annual percent change in the growth rate of GDP per capita between 2018 and 2028?
A)3.33%
B)5%
C)33%
D)50%

Question

Quizplus · Accepted Answer

We can use the following formula to calculate the average annual percent change:

[(Ending Value / Beginning Value)^(1/Number of Years) - 1] x 100

Plugging in the values given:

[(12,000 / 8,000)^(1/10) - 1] x 100

= 4.14%

Rounding to the nearest whole number, the average annual percent change is approximately 5%, which corresponds to choice B.

If Real GDP Per Capita in the United States Is