1. Assume real per capita GDP in West Springfieldis $8,000while in South Homestead it is $2,000. The annual growth rate in West Springfield is 2.33%, while in South Homestead it is 7%. How many years will it take for South Homestead to catch up to the real per capita GDP of West Springfield?

2. What will the income of the two countries be when it is equal?

3.The rule of 70 applies in any growth-rate application. Let's say you have $4000.00in savings and you have three alternatives for investing these funds. How many years would it take to double your savings in each of the following three accounts? In all cases, give your answers to two decimals. a. a savings account earning1.00% interest ? years

b. a U.S. Treasury bond earning3.00% interest? years c. a stock market mutual fund earning7.00% interest ? years