If real GDP per capita in Ireland is estimated to be $7,400 in 2014,what will real GDP per capita be in 2019 if real GDP per capita grows at an annual rate of 2.8%?
A)$7,607
B)$8,496
C)$9,472
D)$20,720

Question

Quizplus · Accepted Answer

To calculate the real GDP per capita in 2019, we need to use the following formula:
Real GDP per capita in 2019 =
Real GDP per capita in 2014 x (1 + annual growth rate)^(number of years between 2014 and 2019)

Plugging in the values, we get:
Real GDP per capita in 2019 =
$7,400 x (1 + 0.028)^(5)
= $7,400 x 1.14875
= $8,496

Therefore, the answer is B.

If Real GDP Per Capita in Ireland Is Estimated to Be