Use the following to answer questions
Figure: Economic Growth in Major World Regions
-If real GDP per capita in the United States is currently $50,000 and grows at 2.5% per year,it will take approximately how many years to reach $200,000?

Question

Use the following to answer questions 
Figure: Economic Growth in Major World Regions 
-If real GDP per capita in the United States is currently $50,000 and grows at 2.5% per year,it will take approximately how many years to reach $200,000?

Quizplus · Accepted Answer

Using the formula for compound interest, we can solve for the number of years it will take for real GDP per capita to reach $200,000:
$200,000 = $50,000(1 + 0.025)^t
4 = 1.025^t
ln 4 = t ln 1.025
t = ln 4 / ln 1.025
t ≈ 56 years
Therefore, the answer is B) 56 years.

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