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Scenario: Growth Rates in Two Countries
India is growing at a rate of 9% per year, and its real GDP per capita is about $3,500, while the United States is growing at a rate of 3% per year, and its real GDP per capita is about $47,000.
-(Scenario: Growth Rates in Two Countries) Look at the scenario Growth Rates in Two Countries. About how much will India's real GDP per capita be in 20 years?

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Quizplus · Accepted Answer

India's growth rate is 9%, which means its real GDP per capita will increase by 1.09^20 times over 20 years. 
Real GDP per capita in India in 20 years will be:
$3,500 x 1.09^20 = $19,554.
Rounding this to the nearest $100 gives us a final answer of $19,600, which is option A.

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