Question

The GDP in Alpha is currently $5 trillion and growing at an annual rate of 7%. The GDP in Beta is currently $10 trillion and growing at an annual rate of 3.5%. In approximately how many years will the GDP in Alpha catch-up to that of Beta?

Answer 1

Answer:

In 14 years

Explanation:

One way to get to the answer is to use excel. You must copy the actual GDP and then multiply this amount by the annual rate. For example, to have Alpha´s GDP in one year you do this:

"=5*1,07" which is 5.35 trillion

Then, to obtain the second year GDP you do this:

"=5,35*1,07"  and so on.

The same for Beta´s GDP:

"=10*1,035" which is 10.35 trillion

Then, to obtain the second year GDP:

"=10.35*1,035" which is 10,71 and so on

I attached the excel table.