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Gnesinka [82]
3 years ago
14

The Gross National Product (GNP) is the value of all the goods and services produced in an economy, plus the value of the goods

and services imported, less the goods and services exported. During the period 1994-2004, the GNP of Canada grew about 4.8% per year, measured in 2003 dollars. In 1994, the GNP was $5.9 billion.
Assuming this rate of growth continues, what will the GNP of Canada be (in billions) in the year 2020?

A. $1.64
B. $11.43
C. $19.96
D. $20.92
Mathematics
1 answer:
bearhunter [10]3 years ago
3 0

Answer:

  C. $19.96

Step-by-step explanation:

The growth factor for one year is 1+4.8% = 1.048. Then in 26 years, the growth factor is modeled to be 1.048^26 ≈ 3.3837.

  3.3837·$5.9 billion = $19.96 billion

__

Measured in 2003 dollars.

_____

<em>Comment on the problem statement</em>

We believe the problem statement has imports and exports reversed. Exports are produced in Canada, so are included in their GNP. Imports are deducted from the GNP.

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