Recall the discussion that we had in class about growth and the discrete equation of growth. As we all know, China's economy has already overtaken the US economy in terms of GDP@PPP3 (with it being almost $25T dollars for China vs. $20T dollars for the US in 2018). However, in terms of GDP "Per Capita" @ PPP (i.e. GDPPC@PPP), the US economy is still running way ahead of China's economy (with it being almost $62.6k dollars for the US vs. $18.1k dollars for China's economy in 2018). According to the IMF forecasts, we can expect that the US GDPPC@PPP will grow annually at the rate of 2% on average and that of China will grow annually at the rate of 6% on average in the next three decades. Please use the discrete formula of growth to find out how many years it will take for China's economy to overtake the US economy in terms of G..C@PPP.

3.

We were given:

GDPPC (1+g)N = GDPPC (1+g)N (us = china)

or

we can us the LN function in excel

If using the top equation how do you solve for N?

62.6(1.02)N = 18.1(1.06)N