The principle of compound interest insures that a small difference in the per ca

Question

The principle of compound interest insures that

a small difference in the per capita GDP between countries in one year will grow to a large difference in the long run.

U.S. interests are compounded by the interests of all other countries.

U.S. interests are compounded by the interests of Great Britain and Germany.

a small difference in the per capita GDP growth rate between countries in one year will grow to a large difference in the long run.

Please Explain

a small difference in the per capita GDP between countries in one year will grow to a large difference in the long run.

U.S. interests are compounded by the interests of all other countries.

U.S. interests are compounded by the interests of Great Britain and Germany.

a small difference in the per capita GDP growth rate between countries in one year will grow to a large difference in the long run.

Explanation / Answer

The second and third option are absolutely wrong.

The first and fourth options are quite close.

The only wording difference in the first and the fourth statements if of GROWTH RATE.

We are discussing here about Compound Interest which is a rate, hence GROWTH RATE in the fourth statement makes better sense instead of the first statement.

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