Question

An economy that starts with a GDP of 1000 and grows at 6% per year will reach a GDP of __________ after 15 years.

Answer 1

Answer:

An economy that starts with a GDP of 1000 and grows at 6% per year will reach a GDP of $1,953 after 15 years.

Explanation:

The initial GDP is 1000.

The growth rate is 6% per year.

After 15 years, using the compound growth formula:

GDP after 15 years = 1000 * (1 + 0.06)^15 = $1,953

Therefore, the GDP will reach $1,953 after 15 years of 6% annual growth