Suppose that an industrially advanced country (IAC) has a per capita income of $38,000, which is growing at an annual rate of 2 percent. A developing country (DVC) has a per capita income of $1,500, which is increasing at an annual rate of 5 percent. By how much will the per capita income gap between the IAC and DVC

 

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Suppose that an industrially advanced country (IAC) has a per capita income of $38,000, which is growing at an annual rate of 2 percent. A developing country (DVC) has a per capita income of $1,500, which is increasing at an annual rate of 5 percent. By how much will the per capita income gap between the IAC and DVC change by the end of the year? Instructions: Enter your answer as a whole number. The per capita income gap between the IAC and DVC will increase by $ over the next year.

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