the annual Gross Domestic Product (GDP) of a country is the value of all of the goods and services produced in the country during a year. During the period 1985-1999, the Gross Domestic Product of the United States grew about 3.2% per year, measured in 1996 dollars. In 1985, the GDP was $577 billion.
In what year will the GDP reach $2 trillion? You just need to give the year, not part of a year.
To calculate the year when the GDP will reach $2 trillion, we need to use the given growth rate of 3.2% per year and the starting GDP value of $577 billion in 1985.
First, we need to figure out how many years it will take for the GDP to increase from $577 billion to $2 trillion. To do this, we'll use the formula for compound annual growth rate (CAGR):
Final Value = Initial Value * (1 + Growth Rate)^Number of Years
$2 trillion = $577 billion * (1 + 0.032)^Number of Years
Dividing both sides by $577 billion, we get:
(1 + 0.032)^Number of Years = 2 trillion / $577 billion
Now, let's solve for the number of years it will take:
Number of Years = log base (1 + 0.032) of (2 trillion / $577 billion)
Using a calculator, we find that the number of years is approximately 24.75 years.
Next, we add the rounded number of years to the starting year of 1985 to find the year when the GDP will reach $2 trillion:
1985 + 24 = 2009
So, the GDP of the United States is projected to reach $2 trillion in the year 2009.