Real GDP (1 Viewer)

[mouse]

i'm stuck on this problem:

Two economies, Hare and Tortoise, each start with a real GDP per person of $5000 in 1950. Real GDP per person grows 3% per year in Hare and 1% per year in Tortoise. In the year 2000, what will be the real GDP per person in each country?

 

[jay9nine]

do we honestly have to no that???

 

[AGB]

isnt that just a straight compound interest question?? like P (1 + r)^n, where P is principle, r is the rate and n is the number of years??

 

[santaslayer]

5000 (1.03)^50 for hare...

 

[mouse]

oh use compounding interest. thanks.