What is the real GDP after four years if Country X's average annual growth rate is 8.6 percent and the initial real GDP was $2,756.0 million?
A)$2,993.0 million
B)$3,833.5 million
C)$1,077.5 million
D)$3,250.4 million

Question

Quizplus · Accepted Answer

The real GDP after four years can be calculated using the formula for compound growth: Future Value = Present Value * (1 + growth rate)^number of years. Here, it is $2,756.0 million * (1 + 0.086)^4 = $3,833.5 million.

What Is the Real GDP After Four Years If Country