Answer to Question #150004 in Macroeconomics for enny

Question

An economy is forecasted to grow continuously so that the gross national product (GNP), measured in billions of dollars, after t years is given by:

GNP=60e0.03t

After how many years GNP is forecasted to reach RM88 billion?

Answer 1

Solution to question150004

From the equation, $GNP=60e^{0.03t}$

Since we have the forecast value of GNP, we substitute it with RM88 billion as shown below

$RM88 billion=60e^{0.03t}$

$88=60e^{0.03t}, divide both sides by 60$

$\frac{88}{60}=e^{0.03t}$

$1.46667=e^{0.03t}$

$ln 1.46667=In (e^{0.03t}), introduce logarithmic$

$In \frac{1.46667}{0.03}= t$

$t=12.77 years$

GNP is forecast to reach RM 88 billion in 12.77 years