Question

Heading 2 Title 3. Say that the average worker in Canada has productivity of $30 per hour while the average worker in the United Kingdom has productivity of $25 per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at 1% per year while worker productivity in the UK grows 3% per year. At that point, who will have the higher productivity level, and by how much? -Productivity level of C

Answer 1

3) Productivity of Canada= $30 per hour

Productivity of UK=$25 per hour

For finding the level of productivity at end of five years , the formula would be

Final productivity= initial productivity*(1+rate)^{number of years}

Final level for Canada= $30(1+0.01)⁵= $30(1.051)=$31.53

Final level for UK= $25(1+0.3)⁵=28.98$

Difference after 5 years would be a higher productivity level of Canada with difference of about $2.548~$2.55 per hour.