An economy starts off with a gdp per capita of 12,000 euros. how large will the gdp per capita be if it grows at an annual rate of 3% for 10 years? 3% for 30 years? 6% for 30 years?

GDP: 12,000 euros

Annual rate: 3%

Year 1: 12,000 * 0.03 = 360

Year 2: 12,360 * 0.03 = 370.8

Year 3: 12,730.80 * 0.03 = 381.92

Year 4: 13,112.72 * 0.03 = 393.38

Year 5: 13,506.10 * 0.03 = 405.18

Year 6: 13,911.28 * 0.03 = 417.34

Year 7: 14,328.62 * 0.03 = 429.86

Year 8: 14,758.48 * 0.03 = 442.75

Year 9: 15,201.23 * 0.03 = 456.04

Year 10: 15,657.27 * 0.03 = 469.72

1. After 10 years, the GDP per capita growing at an annual rate of 3% will be 16.126.99 Euros

For calculating the future GDP for 30 years at an annual rate of 3%, we will use the following formula:

Future GDP= Current GDP * (1 + Annual rate) ^ Time in years or periods

Future GDP = 12,000 * (1 + 0.03) ^ 30

Future GDP = 12,000 * (1.03) ^ 30

Future GDP = 29,127.15

2. After 30 years, the GDP per capita growing at an annual rate of 3% will be 29,127.15

For calculating the future GDP for 30 years at an annual rate of 6%, we will use the following formula:

Future GDP= Current GDP * (1 + Annual rate) ^ Time in years or periods

Future GDP = 12,000 * (1 + 0.06) ^ 30

Future GDP = 12,000 * (1.06) ^ 30

Future GDP = 68,921.89

3. After 30 years, the GDP per capita growing at an annual rate of 6%, will be 68,921.89 Euros.

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