This year,real GDP per person in Country A is eight times real GDP per person in Country B.If Country B's real GDP per person grows at a rate of 5 percent,about how many years will it take for Country B to reach the level of real GDP per person in Country A in this year?

Question

Quizplus · Accepted Answer

Let x be the number of years it takes for Country B to reach Country A's level of real GDP per person.
Then we have:
(1+0.05)^x = 8
Taking the logarithm of both sides, we get:
x log(1+0.05) = log 8
x = log 8 / log(1+0.05) ≈ 41.5
Therefore, it will take about 42 years for Country B to reach Country A's level of real GDP per person. The correct answer is D.

This Year,real GDP Per Person in Country a Is Eight