Question

If real GDP per capita in the United States is currently $50,000 and grows at 2.5% per year, it will take approximately how many years to reach $200,000?

Answer 1

Answer:

A. approximately 56 years

Explanation:

Giving that

Annual percentage growth rate = 2.5%

Using rule of 70

Years to double = 70 ÷ 2.5

= 28 years

Therefore, years to quadruple from original GDP

= 28 × 2

= 56 years

Therefore it will take 56 years for US GDP to reach 200,000 from 50,000 at annual rate of 2.5