Question

if real gdp per capita in the united states is $8,000, what will real GDP per capita in the united states bea fter 5 years at an annual growh rate of 3.2%

Answer 1

Answer:

$9,364.58  

Explanation:

The future value formula stated below can be used in determining the real GDP after 5 years have passed since the real GDP is expected to increase at an annual growth of 5% per  year as shown below:

FV=PV*(1+r)^n

PV is the current real GDP OF $8000

r is the growth rate of real GDP which is 3.2%

n is the timing involved in the computation

FV=$8000*(1+3.2%)^5=$9,364.58