1st attempt See Hint Real per capita GDP in China in 1959 was about $400, but it

Question

1st attempt See Hint Real per capita GDP in China in 1959 was about $400, but it doubled to about $800.00 by 1980. a. What was the average annual economic growth rate in China over the 21.00 years from 1959 to-1980? (NOTE: Round this to two places past the decimal point.) b. Per capita real GDP doubled in China again in only seven years, reaching $1600.00 by 1987.00. What was the average annual economic growth rate between 1980 and 1987.00? (NOTE: Round this to two places past the decimal point.)

Explanation / Answer

Answer

The growth rate can be found by the futute value formula
FV=PV*(1+i)^n
rewriting the formula
1+i=(FV/PV)^(1/n)
a)
i=(800/400)^(1/21) -1
=0.033557783
=3.36%
b)

i=(1600/800)^(1/7) -1
=0.104089514
=10.41%

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