Ethan is planning for his retirement. He has narrowed it down to two investment options. The first is an ira where monthly payme
1 answer:
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Answer:
2. 20 years under scenario A, versus 16 years under scenario B
Explanation:
It is clearer if I explained with an example:
Let suppose that a nation´s real GDP for 2018 was 1000. In scenario A you will have:
2019:1000*3.5%=1035
2020:1035*3.5%=1071,2
and so on, the same for scenario B
2019: 1000*4,5%= 1045
2020: 1045*4,5%= 1092
and so on.
I attached an excel table where you can see that: in the first scenario, between year 20 and 21 (2038 and 2039) the GDP will double and in the second one, between year 15 and 16 GDP will double. The answer is 2.
