Question

If GDP is $25 trillion, in how many years will GDP increase to $100 trillion if annual growth is 5 percent?

Answer 1

Answer:

The number of years is 28 years

Explanation:

The computation is shown below:

Gross domestic product × (1 + growth rate)^time = Increased Gross domestic product

$25 trillion × (1 + 0.05)^time = $100 trillion

(1 + 0.05)^time = 4 trillion

t = ln 4 ÷ ln 1.05

= 28 years

Hence, the number of years is 28 years

We simply applied the above formula so that the correct number of years could come