<p>Value of GDP every year is in geometric progression with common ratio being 102/100
For value of gdp per capita in nth year, just find the value of (n-1)th term in the geometric progression.</p>

CC BY-SA 3.0
2018-02-26T12:11:37.173Z
Can you please do an example?
Neil
CC BY-SA 3.0
2018-02-26T06:48:43.457Z
2018-02-26T06:48:43.457Z
Aatsrh
<p>A hint for part 2.  To obtain an approximate answer, it's convenient to use the rule that the doubling time $D$ in years of a quantity growing exponentially at a constant annual rate $r$ is given approximately by the <a href="https://en.wikipedia.org/wiki/Rule_of_72" rel="nofollow noreferrer">rule of 72</a>:</p>

<p>$$D = \frac{72}{r}$$</p>

<p>Given the assumptions in your question the numbers work out very neatly.</p>

CC BY-SA 3.0
2018-02-27T10:14:26.073Z
2018-02-27T10:14:26.073Z
Adam Bailey
<ol>
<li>Assume that the annual growth GDP per capita is 2%, how much will the real GDP per capita increase in 10 years.
I know the manual way is to take 2 percent every years. 
For example after 1 year would be (100 x 2 )/100 = 2. So it would be a total of 102. Is there a formula to calculate the percent after 10 years? </li>
<li>Let’s say that China’s per capita GDP grow 9% a year for the next 16 years and 6% a year for the next 24 years. What is China’s per capita GDP in 40 years
Well this one is kind of the same with the first one, is there a formula to calculate the percentage only.
Thank you</li>
</ol>

<macroeconomics><gdp>
Calculate real GDP
Neil
# Calculate real GDP

(Asked by: username_0 on 2018-02-26)

1. Assume that the annual growth GDP per capita is 2%, how much will the real GDP per capita increase in 10 years.
   I know the manual way is to take 2 percent every years.
   For example after 1 year would be (100 x 2 )/100 = 2. So it would be a total of 102. Is there a formula to calculate the percent after 10 years?
2. Let’s say that China’s per capita GDP grow 9% a year for the next 16 years and 6% a year for the next 24 years. What is China’s per capita GDP in 40 years
   Well this one is kind of the same with the first one, is there a formula to calculate the percentage only.
   Thank you

**Tags:** macroeconomics, gdp


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## 2 answers

### Answer by username_1 on 2018-02-26. Score: 0

Value of GDP every year is in geometric progression with common ratio being 102/100
For value of gdp per capita in nth year, just find the value of (n-1)th term in the geometric progression.

> **Comments:**
> **username_0**: Can you please do an example?  

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### Answer by username_2 on 2018-02-27. Score: 0

A hint for part 2. To obtain an approximate answer, it's convenient to use the rule that the doubling time $D$ in years of a quantity growing exponentially at a constant annual rate $r$ is given approximately by the [rule of 72](https://en.wikipedia.org/wiki/Rule_of_72):

$$D = \frac{72}{r}$$

Given the assumptions in your question the numbers work out very neatly.


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