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NNADVOKAT [17]
3 years ago
6

Suppose real GDP in Puerto Rico is $48 billion and its annual growth rate is 8%. Real GDP for Puerto Rico will double in

Advanced Placement (AP)
2 answers:
Natasha_Volkova [10]3 years ago
7 0

Answer: D. 8.75 years

<span>If real GDP in Puerto Rico is $48 billion and its annual growth rate is 8%. Real GDP for Puerto Rico will double in 8 years.

Real GDP will be 82.26 in 6yrs, 88.84 in 8 years and almost double (94.17) in 8.75 years. </span>
ki77a [65]3 years ago
7 0

Answer:

Option D is the correct option,8.75 years

Explanation:

Using the rule of 70 which implies that an amount will double when 70 is  divided by the required rate:

Number of years an investment doubles=70/annual return rate

For instance,an individual has $40 million at hand and needs to purchase a property that is worth $80 million in the future,the individual can then determine how many years it would be take for the $40 million to double given a specific rate of return on investment.

Specifically,in this case the GDP of $48 million would double in  8.75 years' time  (70/8)

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