Math Problem Statement
Richland’s real GDP per person is $20,000, and Poorland’s real GDP per person is $10,000. However, Richland’s real GDP per person is growing at 1 percent per year, and Poorland’s is growing at 3 percent per year. Compare real GDP per person in the two countries after 10 years and after 20 years. Approximately how many years will it take Poorland to catch up to Richland? Instructions: Enter your responses as whole numbers.
GDP per person GDP per person after 10 years GDP per person after 20 years
Richland $ $
Poorland $ $
Poorland will catch up to Richland in years.
Solution
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Math Problem Analysis
Mathematical Concepts
Exponential Growth
Algebra
Compounding
Formulas
Future GDP = Current GDP × (1 + growth rate)^number of years
Solving for t in 10,000 × (1 + 0.03)^t = 20,000 × (1 + 0.01)^t
Theorems
Exponential Growth Model
Suitable Grade Level
Grades 9-12
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