Assume an eocnomy's GDP is 400 billion Dollars.
If this economy's GDP is growing at a constant rate of 6% per year, when would thsi economys GDP will surpass 500 billion Dollars?
Hint: Use the future value formula provided on page 457 of the text.
Here you are interested in finding n, the number of years for GDP to increase from a present value of 400 billion Dollars to a future value of 500 billion Dollars.
The economy will surpass... View the full answer