If real GDP per person was $2,000 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 real GDP per person in 2000, we need to use the formula:
Real GDP per person in 2000 = Real GDP per person in 1900 x (1 + annual growth rate) ^ (number of years)
Plugging in the values, we get:
Real GDP per person in 2000 = $2,000 x (1 + 0.01) ^ 100
Real GDP per person in 2000 = $5,410. Therefore, the best choice is C - $5,410.

If Real GDP Per Person Was $2,000 in 1900 and Grew