If per capita GDP in 2013 was $900, in 2014 was $1,000, and in 2015 was $1,200, the growth rate of per capita GDP between 2013 and 2015 was:
A) 25 percent
B) about 11 percent
C) 20 percent
D) about 133 percent
E) about 33 percent

Question

Quizplus · Accepted Answer

The formula for calculating the growth rate is:
Growth rate = ((Final value / Initial value)^(1/number of years)) - 1
Using this formula, we get:
Growth rate = ((1200/900)^(1/2)) - 1 = 0.3297 or 33%
Therefore, the best choice is E, which is about 33 percent.

If Per Capita GDP in 2013 Was $900, in 2014