Based on the compounding period and the amount of GDP, the following are true:
- GDP in 5 years at 3% = $22,332.77 billion.
- GDP in 5 years at 2% = $21,243.60 billion.
- The difference will be = $1,089.17 billion.
What is the GDP in 5 years at 3%?
Because this is GDP, it will be compounded continuously which means that the formula would be:
= Amount x e ^ (Rate x number of years)
= 19,222 x e⁰.⁰³ˣ⁵
= $22,332.77 billion
What is the GDP in 5 years at 2%?
= 19,222 x e⁰.⁰²ˣ⁵
= $21,243.60 billion
What is the difference?
= 22,332.77 - 21,243.60
= $1,089.17 billion
Find out more on continuous compounding at https://brainly.com/question/3932907.
