In 1950, the per capita gross domestic product (GDP) of Australia was approximately $1800. Each year afterwards, the per capita GDP increased by approximately 6.7%. Write a function that gives the approximate per capita GDP of Australia t years after 1950.
Accepted Solution
A:
The function would be: G(t) = 1800(1.067)^t
This is an exponential equation. There are in the form: y = ab^x
The a value represents the starting amount of 1800.
The b value represents the increasing rate of 1.067 (adding on 6.7%).