Question

In the Republic of Yemen, real per capita gross domestic product (GDP) in 2004 was $709.97. By 2005, it had increased to $832.84. At what rate did Yemen's economy grow in that time?

Answer 1

$122.87 or 17.31% per year.

Explanation:

Rate of growth

It's a measure of how a magnitude increases in a determined time. If the magnitude changes from x1 to x2 in a time t, then the rate of growth is:

The GDP of Yemen went from $709.97 to $832.84 in one year. Thus:

r=$122.87 per year

It can also be expressed as a percentage with respect to the initial value:

r=17.31% yearly

Answer 2

$122.87 or 17.31% per year.

Explanation:

Rate of growth

It's a measure of how a magnitude increases in a determined time. If the magnitude changes from x1 to x2 in a time t, then the rate of growth is:

`\displaystyle r=(x2-x1)/(t)`

The GDP of Yemen went from $709.97 to $832.84 in one year. Thus:

`\displaystyle r=(832.84-709.97)/(1)`

r=$122.87 per year

It can also be expressed as a percentage with respect to the initial value:

`\displaystyle r=(122.87)/(709.97)*100\%`

r=17.31% yearly