Refer to the above table. Country A has a per capita real GDP of $1000

Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year.

After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars?
A) B is 12 times larger, or $230,000 larger on a real per capita basis.
B) B is 8 times larger, or $175,000 larger on a real per capita basis.
C) B is a little less than 2 times smaller, or almost $20,000 smaller on a real per capita basis.
D) B is a little over 6 times larger, or almost $60,000 larger on a real per capita basis.

ANSWER

D