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Real per capita GDP in Singapore in 1960 was about $350, but it doubled to about...

Real per capita GDP in Singapore in 1960 was about $350, but it doubled to about $700.00 by 1981. a. What was the average annual economic growth rate in Singapore over the 21.00 years from 1960 to 1981? (NOTE: Round this to two places past the decimal point.) % b. Per capita real GDP doubled in Singapore again in only seven years, reaching $1400.00 by 1988.00. What was the average annual economic growth rate between 1981 and 1988.00? (NOTE: Round this to two places past the decimal point.) %

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Answer #1

We can calculate this by using the formula of compound annual growth rate:

    CAGR(compound annual growth rate)= [FV(future value)/PV(present value)^(1/years)] - 1

a. Average annual economic growth= [(700/350) ^ (1/21)] - 1

= 3.36%

b. Average annual economic growth= [(1400/700) ^ (1/7)] - 1

  = 10.41%

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