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Suppose that real GDP per capita of the United States is $32,000 and its growth rate...

Suppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year and that real GDP per capita of China is $4,000, and its annual growth rate is 7%. How many years will it take for China's real GDP per capita to be larger than real GDP per capita in the United States?

a. 70 to 75 years

b. 15 to 20 years

c. 5 to 10 years

d. 40 to 45 years

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Answer #1

We need to solve the following equation:

Therefore n is greater than 40 and less than 45

So the right option is D

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