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Scenario: Growth Rates in Two Countries India is growing at a rate of 9% per year, and its real GDP per capita is about $3,500, while the United States is growing at a rate of 3% per year, and its real GDP per capita is about $47,000. (Scenario: Growth Rates in Two Countries) Look at the scenario Growth Rates in Two Countries. How long will it take the United States to double its real GDP per capita?

Respuesta :

Jseberrio

Answer:

23,33 years.

Explanation:

We can use the rule of 70 to calculate what the value of a variable might be in the future(taking into consideration that it is an estimate). This rule is pretty efective to determine the amount of years that take a variable to double.

The rule of 70 is representated in this formula:

[tex]Number of years to double=\frac{70}{Annual Rate of Growth}[/tex]

The annual rate of Growth is 3%

We replace:

[tex]Number of years to double=\frac{70}{3}[/tex]

[tex]Number of years to double=23,33[/tex]

Note: In the formula we need to put the percentage not divided by 100 but complete, so we put 3 instead of 0.03 for the formula to work.

At a constant growing rate of 3% per year, the United States would rake 23,33 years to double its real GDP per capita.

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