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The nominal rate of growth is 17% and inflation is 9% for the five years.Let be the gross domestic product amount at the present year then the projected real gdp after 6 years is?
Most Upvoted Answer
The nominal rate of growth is 17% and inflation is 9% for the five yea...
Real rate of interest=nominal rate-inflation
A=p(1+I)^n
real rate of return=17-9
=8%
A=p(1+.08)^6
=p(1.587)
A=p(1+I)^n
real rate of return=17-9
=8%
A=p(1+.08)^6
=p(1.587)
Community Answer
The nominal rate of growth is 17% and inflation is 9% for the five yea...
Solution:
Given:
Nominal rate of growth = 17%
Inflation rate = 9%
Number of years = 5
To find:
Projected real GDP after 6 years
Formula:
Real GDP = Nominal GDP / (1 + Inflation Rate)
Calculation:
Let the present year GDP be 'P'
Nominal GDP after 5 years = P * (1 + 17%)^5
= P * 1.17^5
Inflation over 5 years = 9%
Real GDP after 5 years = Nominal GDP after 5 years / (1 + 9%)
= P * 1.17^5 / 1.09
To find the projected real GDP after 6 years, we need to calculate the nominal GDP after 6 years and then adjust it for inflation.
Nominal GDP after 6 years = P * (1 + 17%)^6
= P * 1.17^6
Inflation over 6 years = 9%
Real GDP after 6 years = Nominal GDP after 6 years / (1 + 9%)
= P * 1.17^6 / 1.09
Therefore, the projected real GDP after 6 years is P * 1.17^6 / 1.09.
Conclusion:
The projected real GDP after 6 years can be calculated by multiplying the present year GDP by the nominal rate of growth to the power of the number of years and then adjusting for inflation.
Given:
Nominal rate of growth = 17%
Inflation rate = 9%
Number of years = 5
To find:
Projected real GDP after 6 years
Formula:
Real GDP = Nominal GDP / (1 + Inflation Rate)
Calculation:
Let the present year GDP be 'P'
Nominal GDP after 5 years = P * (1 + 17%)^5
= P * 1.17^5
Inflation over 5 years = 9%
Real GDP after 5 years = Nominal GDP after 5 years / (1 + 9%)
= P * 1.17^5 / 1.09
To find the projected real GDP after 6 years, we need to calculate the nominal GDP after 6 years and then adjust it for inflation.
Nominal GDP after 6 years = P * (1 + 17%)^6
= P * 1.17^6
Inflation over 6 years = 9%
Real GDP after 6 years = Nominal GDP after 6 years / (1 + 9%)
= P * 1.17^6 / 1.09
Therefore, the projected real GDP after 6 years is P * 1.17^6 / 1.09.
Conclusion:
The projected real GDP after 6 years can be calculated by multiplying the present year GDP by the nominal rate of growth to the power of the number of years and then adjusting for inflation.
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The nominal rate of growth is 17% and inflation is 9% for the five years.Let be the gross domestic product amount at the present year then the projected real gdp after 6 years is?
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The nominal rate of growth is 17% and inflation is 9% for the five years.Let be the gross domestic product amount at the present year then the projected real gdp after 6 years is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The nominal rate of growth is 17% and inflation is 9% for the five years.Let be the gross domestic product amount at the present year then the projected real gdp after 6 years is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The nominal rate of growth is 17% and inflation is 9% for the five years.Let be the gross domestic product amount at the present year then the projected real gdp after 6 years is?.
The nominal rate of growth is 17% and inflation is 9% for the five years.Let be the gross domestic product amount at the present year then the projected real gdp after 6 years is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The nominal rate of growth is 17% and inflation is 9% for the five years.Let be the gross domestic product amount at the present year then the projected real gdp after 6 years is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The nominal rate of growth is 17% and inflation is 9% for the five years.Let be the gross domestic product amount at the present year then the projected real gdp after 6 years is?.
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