Question #53750

An economy with $55000000000 annual GDP grow 10% a year for 10 years continuously ,how much value it is going to have after 10 years of growth?

Expert's answer

We can calculate this using the following formula:

FV = PV * (1+R)^N,

Where

FV – the GDP value in 10 years

PV – GDP present value

R – GDP growth rate

N – number of years

So,

FV = $55000000000 * (1+0.1)^10 = $55000000000 * 2.59 = $142450000000

FV = PV * (1+R)^N,

Where

FV – the GDP value in 10 years

PV – GDP present value

R – GDP growth rate

N – number of years

So,

FV = $55000000000 * (1+0.1)^10 = $55000000000 * 2.59 = $142450000000

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