If per capita GDP in 2014 was $900, in 2015 was $1,000, and in 2016 was $1,200, the growth rate of per capita GDP between 2014 and 2016 was:
A) 25 percent.
B) about 11 percent.
C) 20 percent.
D) about 133 percent.
E) about 33 percent.

Question

Quizplus · Accepted Answer

The growth rate of per capita GDP can be calculated by using the formula:

Growth rate = ((final value/initial value)^(1/number of years))-1

Using this formula, we can calculate the growth rate between 2014 and 2016:

Growth rate = ((1200/900)^(1/2))-1
= ((4/3)^(1/2))-1
= 0.333, or about 33 percent.

Therefore, the correct answer is E, about 33 percent.

If Per Capita GDP in 2014 Was $900, in 2015