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Real per capita GDP in Taiwan in 1961 was about $500, but it doubled to about $1000.00 by 1981. a. What was the average annual economic growth rate in Taiwan over the 20.00 years from 1961 to 1981? (NOTE: Round this to two places past the decimal point.)

Respuesta :

Answer:

the average annual economic growth rate in Taiwan from 1961 to 1981 was 41.42%

Explanation:

Hi, we need to use the following formula.

[tex]FV=PV(1+r)^{t}[/tex]

Where:

FV = GDP in 1981 ($1,000)

PV = GDP in 1961 ($500)

r = growth rate

t = years from 1981 to 1961 (20 years)

So, it should look like this:

[tex]1,000=500(1+r)^{20}[/tex]

Now, we solve for "r"

[tex]\frac{1,000}{500} =(1+r)^{20}[/tex]

[tex]2=(1+r)^{20}[/tex]

[tex]\sqrt[20]{2} -1=r[/tex]

[tex]r=0.4142[/tex]

So, the growth rate of Taiwan´s GDP is 41.42%

Best of luck.

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