Need help with the following problem. Please show work. asured in U.S. dollars)

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Need help with the following problem. Please show work.

asured in U.S. dollars) 2. Ethiopia has a GDP of S8 billion Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4 million. Calculate the per capita GDP for each country and identify which one is higher. 3. Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age . 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?

Explanation / Answer

2) per capita GDP = GDP/population

Ethopia = 8000/55 = $ 145.45

Costa Rica = 9000/4 = $ 2240

3) Time taken to double = n

(1 + 8%)n = 2

n = 9 years

Age = 29 years

4) GDP (After 10 years) = 12000 x (1 + 3%)10 = $ 16127

GDP (After 30 years) = 12000 x (1 + 3%)30 = $ 29127.15

GDP (After 30 years) = 12000 x (1 + 6%)30 = $ 68921.9

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