If,between 2003 and 2013,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 find the average annual growth rate, we can use the compound annual growth rate (CAGR) formula:

CAGR = (Ending value / Beginning value)^(1/number of years) - 1

Plugging in the values, we get:

CAGR = (40 / 20)^(1/10) - 1
CAGR = 0.0718 or 7.18%

Therefore, the best choice is B) 7%.

If,between 2003 and 2013,the Economy's Real GDP Grew from $20