(a) GDP per capita in the year 2025 if it grows by 0 percent.

Question

GDP per capita in the United States was approximately $63,000 in 2020. Use the growth formula (see below) to answer the following questions: Growth formula: (future value) = (present value) × (1 + r)t present value = this year's GDP per capita future value = GDP per capita in the future r = rate of growth (in decimal form) per year What will GDP per capita be in the year 2025 if it grows each year by 2.5 percent?

Answer 1

Question

Chapter 2, Problem 3P

To determine

(a)

GDP per capita in the year 2025 if it grows by 0 percent.

To determine

(b)

GDP per capita in the year 2025 if it grows by 2 percent.

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