Question

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

Answer 1

Answer: D. 8.75 years

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. 

Answer 2

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)