Question

The fictitious country of Pamopolis is expected to have an average annual growth rate of GDP per-capita of 9% for the foreseeable future. How many years will it take Pamopolis's GDP per-capita to double? Please round to 2 decimal places.

Answer 1

By applying the Rule of 72, it would take approximately 8 years for Pamopolis's GDP per-capita to double at an annual growth rate of 9%.

Step-by-step explanation:

The question from the student concerns the time it will take for the GDP per-capita of a fictional country named Pamopolis to double, given an average annual growth rate of GDP per-capita of 9%.

To solve this problem, we can apply the Rule of 72, which is a shortcut to estimate the number of years required to double the GDP per-capita at a constant annual compound interest rate. We divide 72 by the annual growth rate to get the doubling time.

Therefore, we divide 72 by 9% (or 72 / 9), which equals 8 years. This implies that it would take approximately 8 years for Pamopolis's GDP per-capita to double at an annual growth rate of 9%.