So I have this assignment:
The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same.
Compute the doubling time for France’s per capita real GDP. 72/1.9% = 37.8947 or approximately 38 years
Compute the doubling time for Korea’s per capita real GDP. 72/4.2% = 17.1428 or 17 years
What will France’s per capita real GDP be in 2045?
What will Korea’s per capita real GDP be in 2045?
I have already figured out the rule 72 for the first two questions, now I just need to figure out how to calculate the last 2. I am at a lost I cannot find in my textbook how to figure it out although I may be looking past it or not understanding. Any help or guidance is appreciated. I do not want you to solve it for me I just want to know how to solve it. Thank you in advance.
*Update* I assume we use the compound interest equation A=P(1+r)^t but how do I figure out t? Do I calculate from the year 2000 or what? I think I am over thinking this but I am so confused. Please help.