What annual growth rate will result in a (2024)

#### Solution By Steps***Step 1: Calculate the Growth Factor*** To double the GDP, the growth factor needed is 2 (doubling means multiplying by 2).***Step 2: Use the Formula for Compound Growth*** The formula for compound growth is: Future Value = Present Value * (1 + Growth Rate)^Number of Periods.***Step 3: Substitute the Given Values*** Substitute the values into the formula: 2 = 1 * (1 + Growth Rate)^14.***Step 4: Solve for the Growth Rate*** Solve for the growth rate: (1 + Growth Rate)^14 = 2.***Step 5: Find the Annual Growth Rate*** To find the annual growth rate, take the 14th root of 2 and subtract 1: Growth Rate = 2^(1/14) - 1.#### Final AnswerThe annual growth rate required for the country to double its GDP in 14 years is approximately 4.69%.#### Key ConceptCompound Growth#### Key Concept ExplanationCompound growth is the process where an investment or economy grows at an increasing rate over time, taking into account the effect of compounding. In this case, the GDP doubling in 14 years illustrates the concept of compound growth, where the growth rate is applied repeatedly to the increasing GDP value.