If,between 2006 and 2016,the economy's real GDP grew from $20 billion to $40 billion,what was the average annual growth rate in the economy?

Question

Quizplus · Accepted Answer

To calculate the average annual growth rate, we can use the compound annual growth rate formula: CAGR = (Ending Value / Beginning Value)^(1/Number of Years) - 1. Plugging in the given values, we get: CAGR = ($40 billion / $20 billion)^(1/10) - 1 = 0.0718 or 7.18%. Rounded to the nearest whole number, the average annual growth rate is 7%. Therefore, the best choice is B) 7%.

If,between 2006 and 2016,the Economy's Real GDP Grew from $20