The president of the World Bank has asked you to calculate the average per capita GDP growth rate of Rwanda from 1980 to 2000.In 1980,per capita GDP was about $1,255 and in 2000 about $1,018.You tell him the average growth rate of per capita GDP is about:
A)1.0 percent.
B)-1.0 percent.
C)99 percent.
D)-19.0 percent.
E)-99 percent.

Question

Quizplus · Accepted Answer

The average growth rate is calculated using the formula for the annual growth rate: [(Final Value/Initial Value)^(1/Number of Years)] - 1. Here, it is [(1018/1255)^(1/20)] - 1, which results in approximately -1.0 percent.

The President of the World Bank Has Asked You to Calculate