Question

The annual Gross Domestic Product (GDP) of a country is the value of all of the goods and services produced in the country during a year. During the period 1985-1999, the Gross Domestic Product of the United States grew about 3.2% per year, measured in 1996 dollars. In 1985, the GDP was $577 billion. I what year did/or will the GDP equal $2.2 trillion?

Answer 1

F=5.77X10^9(1.032^(y-1985)), we want to know when this is:

2.2X10^12=5.77X10^9(1.032^(y-1985))

381.2825=1.032^(y-1985)

ln(3,812825)=(y-1985)ln(1.032)

ln(3.812825)/ln(1.032)=y-1985

y=1985+ln(3.812825)/ln(1.032)

y≈2027.5  

So GDP will reach 2.2 trillion during the year 2027.