Per capita real GDP grows at a rate of 3 percent in country F and at a rate of 6 percent in country G. Both begin with equal levels of per capita real GDP. Use Table 9-3 on page 191 to determine how much higher per capita real GDP will be in country G after 20 years. How much higher will real GDP be in country G after 40 years?

Transcribed Image Text:

Interest Rate Number of Years 3% 4% 5% 6% 8% 10% 20% 1.03 1.04 1.05 1.06 1.08 1.06 1.08 1.10 1.12 1.17 1.21 1.09 1.12 1.16 1.19 1.26 1.33 1.13 1.17 1.22 1.26 1.36 1.4 1.16 1.22 1.28 134 1.47 1.61 1.19 1.27 1.34 1.4 1.59 1.77 1.23 1.32 1.4 1.50 1.71 1.27 1.37 1.48 1.59 1.85 2.14 1.30 1.42 1.55 1.68 2.00 2.35 1.34 1.48 1.63 1.792.16 2.59 1.81 2.19 2.65 3.20 4.66 6.72 2.43 3.24 4.32 5.74 10.00 17.40 237.00 3.26 4.80 7.04 10.30 21.70 45.30 1,470.00 4.38 7.11 11.50 18.40 46.90 117.00 9,100.00 1.20 1.44 1.73 2.07 2.49 2.99 3.58 4.30 5.16 6.19 38.30 1.10 1.94 10 20 30 40