Question

There are two countries on a peninsula. The first has a real GDP per capita annual growth rate of 2% and its neighbor to the south has an annual growth rate of 5%. How much sooner will the country in the south double its GDP per capita than its neighbor in the north?

A) 21 years
B) 15 years
C) 10 years
D) 5 years

Answer 1

A

Step-by-step explanation:

Growth rate is defined as the level at which a variable grow over a period of time .

Workings

Applying rule 70

First country growth = 2%

T= 70/2 =35

Second country growth rate is 5%

T= 70/5

=14

If the first country doubles at 35 years and the second at 14 years,

How much sooner = the difference between the time it takes the two countries to double their GDP.

=35-14 = 21 years

Answer 2

A. 21 years

Step-by-step explanation:

Using the rule of 70

Time it will take the first to double = 70/growth rate

= 70/2

= 35 years.

Applying the same principle

Time it will take the country to the south to double = 70/growth rate

= 70/5

= 14 years.

Thus, the country to the south would double GDP per capita than neighbor in the north in

35 years - 14 years

= 21 years