What is the real GDP after four years if Country Utopia's average annual growth rate is 8.6 percent and the initial real GDP was $2,756.0 million?
A) $2,993.0 million
B) $3,833.5 million
C) $1,077.5 million
D) $3,250.4 million

Question

Quizplus · Accepted Answer

To calculate the real GDP after four years with an annual growth rate of 8.6%, we use the formula for compound growth: Final GDP = Initial GDP * (1 + growth rate)^number of years. Plugging in the values: $2,756.0 million * (1 + 0.086)^4 = $3,833.5 million.

What Is the Real GDP After Four Years If Country