At an annual growth rate of 0.7%,approximately how long does it take for real GDP per capita to increase from $30,000 to $60,000 in a country?

Question

Quizplus · Accepted Answer

Using the formula for exponential growth, we have:

$60,000 = $30,000*(1+0.007)^t

Solving for t, we get:

t = ln(2)/ln(1+0.007)

t ≈ 98.6

Therefore, it would take approximately 100 years for real GDP per capita to increase from $30,000 to $60,000 at an annual growth rate of 0.7%.

At an Annual Growth Rate of 0