Today two economies have the same size (e.g., $1B). The growth rate for the first one is 3% and for the second, 6%. How many times the second economy will be larger than the first in 100 years? 17.65, 2, 10.32, 6.89

Today two economies have the same size (e.g., $1B). The growth rate for the first one is 3% and for the second, 6%. How many times the second economy will be larger than the first in 100 years? 17.65, 2, 10.32, 6.89

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Today two economies have the same size (e.g., $1B). The growth rate for the first one is 3% and for the second, 6%. How many times the second economy will be larger than the first in 100
years? 17.65, 2, 10.32, 6.89

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