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lord [1]
3 years ago
12

Suppose that a nation has a GDP of 1.0 trillion dollars in 2000. If a country grows at an average rate of 3.0 % per year over a

fifteen year period, then its compounded GDP at the end of the 15 year period should be:
Business
1 answer:
raketka [301]3 years ago
3 0

Answer:

$1.558 trillion

Explanation:

Given an initial GDP of $1 trillion and an average growth rate of 3% per year, at the end of 15 years, the GDP would have risen to:

GDP_{2000} * (1+r)^{15}

= 1 trillion * (1+0.03)^{15}

= 1 trillion * (1.03)^{15}

= 1 trillion * 1.558

= 1.558 trillion.

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