-According to the above table, if per capita real GDP is currently $100, then at a constant annual rate of growth of 8 percent, per capita real GDP ten years from now will be equal to
A) $200.
B) $214.
C) $216.
D) $259.

Question

-According to the above table, if per capita real GDP is currently $100, then at a constant annual rate of growth of 8 percent, per capita real GDP ten years from now will be equal to
A) $200. 
B) $214. 
C) $216. 
D) $259.

Quizplus · Accepted Answer

Per capita real GDP will be $216 ten years from now.The formula for calculating future value is:FV = PV * (1 + r)^nwhere:FV is the future valuePV is the present valuer is the annual rate of growthn is the number of yearsIn this case, we have:PV = $100r = 8% = 0.08n = 10So, the future value is:FV = $100 * (1 + 0.08)^10= $100 * 2.1589= $215.89Therefore, per capita real GDP ten years from now will be approximately $216.

-According to the Above Table, If Per Capita Real GDP