Can someone help me asap?

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

the formula for this question is Future value = Present value x (1 + r)^t

 

in this case, the FV = $3400T, PV = $577B, and r = 0.032 (as a decimal)

 

$3400T = $577B (1.032)^t

the solution requires the use of logarithms

log ($3400T / $577B ) = t x log1.032

(log 3400 - log 577) / log1.032 = t

 

t ≅ 51 years