The annual Gross Domestic Product (GDP) of a country is the value of all of the goods and services produced in the country during a year. During the period 1985

Question

The annual Gross Domestic Product (GDP) of a country is the value of all of the goods and services produced in the country during a year. During the period 1985-1999, the Gross Domestic Product of the United States grew about 3.2% per year, measured in 1996 dollars. In 1985, the GDP was $577 billion. I what year did/or will the GDP equal $3.4 trillion?

Answer 1

1985 GDP= $577 billion= .577 trillion

it grows 3.2% annually.

when will it reach 3.4 trillion

general formula is A=Pe^rt

where r= annual interest rate=.032, t =years, P =amount in time t=0 .577 trillion, A =Amount after t years =3.4 trillion

3.4 =.577e^.032t

3.4/.577 = e^.032t

ln(3.4/.577) = .032t

t = ln(3.4/.577)/.032 = about 55.43 years

1985+55.43 = 2040.43

GDP will reach 3.4 trillion in about the 1st half of year 2041