5.2The GNP of a country is forecast to grow at 3% per annum and its population is expected to grow at 2% per annum. GNP is currently $20,000 million and the population is 8 million, giving a GNP per capita of $2500. When will the GNP per capita reach $3000?(Hint: assuming continuous growth, the GNP in t years time is 20000e0.03t and the population is 8e0.02t)
5.3An investment of £1 million increases by r% at the end of each year (based upon the value at the start of that year) and after 10 years it is worth £2 million. Find the value of r.Hint: unlike the previous two questions, this one assumes that the value increases in steps rather than continuously. Remember that adding x% is equivalent to multiplying by (1 + x/100)