Answer:
We have the expression
11*(1.0022)^t
That represents (in thousands) the per capita gross domestic product in the US since 1950.
This means that our function
GDP(t) = 11*(1.0022)^t
then, for t = 0 we obtain the GDP in the year 1950
GDP(0) = 11, in 1950 the GDP were 11 thousands.
If we want to calculate it today, we have:
GDP(70) = 11*(1.0022)^70 = 11.27 thousands.
This equation is an exponential growth of the form A*r^n
where A is the initial value, r is the rate of growth, and n is the variable.
We can analyze r and calculate r - 1 to get the portion that grows each year, this is
1.0022 - 1 = 0.0022
If we multiply it by 100%, we have:
0.0022*100$ = 0.22%
This means that the GDP increases by 0.22% each year.
