If GDP is $20 trillion, how many years will it take for GDP to increase to...

If GDP is $20 trillion, how many years will it take for GDP to increase to $40 trillion if annual growth is 10 percent? Instructions: Enter your answer as a whole number. years.

Expert Solution

Solution:-

F = P *(1+i) ^t

Here F = 40, P = 20, I = 10% = 0.10

40 = 20 * (1+0.10) ^t

(1.10)^t = 40 / 20 = 2

Taking log both sides

t = log 2 / log 1.10 = 7.27 yrs ~ 7 yrs

Rahul Sunny answered 2 years ago

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