Question

Check my w 23 Connect Problem CP 22-3 (algo) Suppose that an industrially advanced country (IAC) has a per capita income of $36,000, which is growing at an annual rate of 2.5 0.5 points percent. A developing country (DVC) has a per capita income of $1,800, which is increasing at an annual rate of 4 percent. By how much will the per capita income gap between the IAC and DVC change by the end of the year? nstructions: Enter your answer as a whole number. The per capita income gap between the IAC and DVC will (Click to select)by $over the next year eBook References

Answer 1

				Difference
IAC	36000	DVC	1800	34200
2.5% annual rate	36900	4% annual rate	1872	35028
			Increase in gap	828

The per capita income gap between the IAC and DVC will increase by $828 over the year