word problem

[Acecustis]

I am certain this must be simple algebra but it has been so long since I have taken algebra, I can't for the life of me figure out how to solve this problem. It goes as follows:

The average annual growth rate of output per worker in the United States rose from 1.8% during the period 1970 to 1995 to 2.8% for the years 1996 to 2006.This has led to talk of a New Economy and of sustained higher growth in the future than in the past.

Suppose output per worker grows at 1.8% per year. What will output per worker be--relative to today's level--in 10 years? 20 years? 50 years?

If you could give a detailed description on how to solve the above problem it would be appreciated. Thanks for any help anyone can give.

 

[Deleted member 4993]

I am certain this must be simple algebra but it has been so long since I have taken algebra, I can't f[sub:1mioeoda][/sub:1mioeoda]or the life of me figure out how to solve this problem. It goes as follows:

The average annual growth rate of output per worker in the United States rose from 1.8% during the period 1970 to 1995 to 2.8% for the years 1996 to 2006.This has led to talk of a New Economy and of sustained higher growth in the future than in the past.

Suppose output per worker grows at 1.8% per year. What will output per worker be--relative to today's level--in 10 years? 20 years? 50 years?

If you could give a detailed description on how to solve the above problem it would be appreciated. Thanks for any help anyone can give.

This would be same as a compound interest formula:

O[sub:1mioeoda]10[/sub:1mioeoda] = (1.08)[sup:1mioeoda]10[/sup:1mioeoda] = 2.158924997 = 2.16

O[sub:1mioeoda]20[/sub:1mioeoda] = (1.08)[sup:1mioeoda]20[/sup:1mioeoda] = 4.660957144 = 4.66

.

 

[Acecustis]

I am certain this must be simple algebra but it has been so long since I have taken algebra, I can't f[sub:q1968znq][/sub:q1968znq]or the life of me figure out how to solve this problem. It goes as follows:

The average annual growth rate of output per worker in the United States rose from 1.8% during the period 1970 to 1995 to 2.8% for the years 1996 to 2006.This has led to talk of a New Economy and of sustained higher growth in the future than in the past.

Suppose output per worker grows at 1.8% per year. What will output per worker be--relative to today's level--in 10 years? 20 years? 50 years?

If you could give a detailed description on how to solve the above problem it would be appreciated. Thanks for any help anyone can give.

This would be same as a compound interest formula:

O[sub:q1968znq]10[/sub:q1968znq] = (1.08)[sup:q1968znq]10[/sup:q1968znq] = 2.158924997 = 2.16

O[sub:q1968znq]20[/sub:q1968znq] = (1.08)[sup:q1968znq]20[/sup:q1968znq] = 4.660957144 = 4.66

.

Thanks for the help. Do these numbers signify the productivity level (output per worker) at the 10 year and 20 year intervals?

 

[lilx]

i did not understand your formula, could you please expand it or make it more simple. Thanx