Question

Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be______________.
A.88.2.
B.79.8.
C.82.8.
D.78.9.
E.4.2.

Answer 1

Answer:

A.88.2

Explanation:

Productivity will grow with 5% each year

Last year Productivity = 84

Growth rate = 5%

This years Productivity = 84 X (1+5%)

This years Productivity = 84 X (1+(5/100))

This years Productivity = 84 X (1+(1/200))

This years Productivity = 84 X (1+0.05)

This years Productivity = 84 X 1.05

This years Productivity = 88.2