Answer:
* Singapore's economic growth rate in 2006: 4.26%
* Growth rate of real GDP per person in 2006: 1.94%
* The approximate number of years it will take for real GDP per person in Singapore to double if the 2006 economic growth and population growth rates are maintained: 36 years
Explanation:
* Singapore's economic growth rate in 2006: Real GDP in 2006/ Real GDP in 2005 -1 = 196/188 -1 = 4.26%;
* Growth rate of real GDP per person in 2006:
+ Real GDP per person in 2005: 188 billion/4.4 million = $42,727.3
+ Real GDP per person in 2006: 196 billion/4.5 million = $43,555.6
+ Growth rate of real GDP per person in 2006 = 43,555.6/42,727.3 -1 = 1.94%
* The approximate number of years it will take for real GDP per person in Singapore to double if the 2006 economic growth and population growth rates are maintained:
Denote x is the number of years need to be found
Population growth rate in 2006: 4.5/4.4 -1 = 2.27%
The expected GDP per person after x years : 43,555.6 x 2 = $87,111
The expected GDP per person = Real GDP after x years / Population after x years = 87,111
<=> 196,000 x 1.0426^x / 4.5 x 1.0227^x = 87,111 ( unit is million)
<=> 1.0426^x / 1.0227^x = 1.99 <=> x = 36 years
