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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 U.S. real GDP per capita be in 14 years?

Question

Quizplus · Accepted Answer

To calculate the U.S. real GDP per capita in 14 years, we need to use the formula:
Future value = Present value * (1 + growth rate) ^ time
Using the given information, we get:
Future value = $47,000 * (1 + 0.03) ^ 14 = $71,400
Rounding down to the nearest thousand gives us the answer of $71,000. Therefore, the best choice is A).

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