Use the information in the table to calculate Growtopia's average annual growth rate for real GDP and the approximate amount of time it would take for Growtopia's real GDP to double.

• A. Average Growth:2.4% Time to Double:29.2 years
• B. Average Growth:3.8% Time to Double:18.4 years
• C. Average Growth:5.2% Time to Double:13.5 years
• D. Average Growth:7.6% Time to Double:9.2 years

Answer: (B)

Verified step by step guidance

1. To calculate the average annual growth rate for real GDP, sum up the growth rates for each year and then divide by the number of years. The growth rates given are 1.8%, 2.1%, 6.1%, and 5.2%.
2. Add the growth rates: 1.8% + 2.1% + 6.1% + 5.2%.
3. Divide the total sum of the growth rates by the number of years (4) to find the average annual growth rate.
4. To calculate the approximate time it would take for Growtopia's real GDP to double, use the Rule of 70, which is a way to estimate the number of years required to double the GDP at a constant annual growth rate. The formula is: Time to Double = 70 / Average Growth Rate.
5. Substitute the average growth rate calculated in the previous steps into the Rule of 70 formula to find the time it would take for the GDP to double.