If real GDP per person was $1,000 in 1900 and grew at a 1% annual rate,what would real GDP per person equal 100 years later?

Question

Quizplus · Accepted Answer

To calculate the real GDP per person after 100 years, we need to use the formula: 
Real GDP per person after 100 years = (Real GDP per person in the base year) x (1 + annual growth rate)^number of years 
Plugging in the values: 
Real GDP per person after 100 years = $1,000 x (1 + 0.01)^100 
Real GDP per person after 100 years = $2,705.10 (rounded to the nearest cent) 
Therefore, the answer is (C) $2,705.

If Real GDP Per Person Was $1,000 in 1900 and Grew