Answer:
36.83 years
16.85 years
$63,710.88
$ 71,490.43
Explanation:
We can use the nper formula in excel to compute the doubling time for the capital real GDP of both countries
=nper(rate,pmt,-pv,fv)
FV is the future real GDP which $28,900*2=$57,800 for France while that of Korea is $25,400 ($12,700*2)
PV is the present real GDP
rate is the economic growth rate of 4.2% in Korea and 1.9% in France
France=nper(1.9%,0,-28900,57800)= 36.83
Korea=nper(4.2%,0,-12700,25400)= 16.85
In 2045 ,which is 42 years from now the real GDP are shown thus:
=fv(rate,nper,pmt,-pv)=fv(1.9%,42,0,-28900)=$63,710.88
=fv(rate,nper,pmt,-pv)=fv(4.2%,42,0,-12700)=$ 71,490.43
