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.

Solutions

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

Next > < Previous

Related Solutions

How many years will it take for the balance left in a savings account to increase...

How many years will it take for the balance left in a savings account to increase from 2 of 2 $1,000 to $1,500 if interest is received at a nominal rate of 6% compounded semiannually throughout the period?

At 20% per year simple interest, how many years will it take SR 50,000 to accumulate...

At 20% per year simple interest, how many years will it take SR 50,000 to accumulate to SR 86,400 is closest to: (A) 3.5 years (B) 4 years (C) 4.5 years (D) 3 years

In 2007, France's GDP totaled $1.9 trillion and in 2006 GDP was $1.8 trillion. The total...

In 2007, France's GDP totaled $1.9 trillion and in 2006 GDP was $1.8 trillion. The total amount spent on new capital each year was $357 billion (2007) and $335 billion (2006). To calculate the amount of net investment in France for these years, you need to know: A) The amount of financial capital available, B) Saving, C) The aggregated production function, D) Depreciation.

Suppose GDP is $12 trillion, taxes are $3.6 trillion, privatesaving is $1.5 trillion, and public...

Suppose GDP is $12 trillion, taxes are $3.6 trillion, private saving is $1.5 trillion, and public saving is $0.8 trillion.Assuming the economy is closed, complete the following table by calculating consumption, government purchases, national saving, and investment.Componentamount(trillions of dollars)consumptiongovernment purchasesnational savingsinvestment

- How many years will it take for $100,000 to grow to $500,000 if it is...

- How many years will it take for $100,000 to grow to $500,000 if it is invested at an annual interest rate of 9.15%? Round to the nearest 0.01. - You are offered a line of credit with a quoted interest rate of 20% with daily compounding. What is your effective annual interest rate? Round to the nearest 0.01%.

A. Suppose that nominal GDP was $13 trillion in 2040 in Bedrock. In 2050, nominal GDP was $15 trillion in Bedrock.

A. Suppose that nominal GDP was $13 trillion in 2040 in Bedrock. In 2050, nominal GDP was $15 trillion in Bedrock. The price level fell 5% between 2040 and 2050, and population growth was 1%. Between 2040 and 2050 in Bedrock, nominal GDP growth was ???? % and economic growth was ????? %. Give your answers to one decimal place. B. Suppose that nominal GDP was $20 trillion in 2040 in Bedrock. In 2050, nominal GDP was $18 trillion in Bedrock....

How many years will it take $7,000 to grow to $11,300 if it is invested at...

How many years will it take $7,000 to grow to $11,300 if it is invested at 3.25% compounded continuously?

How many years will it take $3,000 to grow to $5,700 if it is invested at...

How many years will it take $3,000 to grow to $5,700 if it is invested at 9% (A) compounded quarterly? (B) compounded continuously?

Suppose GDP equals $17 trillion, consumption equals $12.2 trillion, the government spends $3.5 trillion and has...

Suppose GDP equals $17 trillion, consumption equals $12.2 trillion, the government spends $3.5 trillion and has a budget deficit of $1.1 trillion. Calculate public saving, taxes, private saving, national saving, and investment. Now, assume that the government pursues its goal of updating the physical infrastructure of the economy (e.g. fixing roads, bridges, etc.). They decide to spend an additional $4 trillion on this endeavor (beyond their current spending). Use this new information to recalculate the totals from above for public...

Consider an economy in which GDP is $8.4 trillion, public saving is -$0.2 trillion (yes, it...

Consider an economy in which GDP is $8.4 trillion, public saving is -$0.2 trillion (yes, it is a negative number), taxes are $0.8 trillion, private saving is $3.0 trillion, export is $0.4 trillion, and import is $0.5 trillion. Calculate consumption, government purchases, national saving, and investment.

Subjects