Question

The gross domestic product (GDP) of a country was $112 billion in 2001. If the GDP grows at a constant rate of 4.3% per year, in what year will the GDP be greater than $200 billion

Answer 1

Answer:

The GDP will grow above or will be greater the $200 billion amount during the 14th year from 2001 which will be 2015.

Explanation:

To calculate the GDP in a particular year after 2001, we know the equation will be,

GDP = 112 * (1+0.043)^t

Where,

• t is the time in years

If we want to calculate the year in which GDP will be greater than 200 billion, we need to substitute the GDP part in the equation with amount of say 200 billion.

200 = 112 * (1+0.043)^t

200 / 112 = (1.043)^t

1.785714286  =  (1.043)^t

Taking log on both sides and dividing the equation for t.

log(1.785714286) / log(1.043)  = t

t = 13.772 years rounded off to 14 years

So, the GDP will grow above or will be greater the $200 billion amount during the 14th year from 2001 which will be 2015.