Answer:
$9,364.58
Explanation:
The future value formula stated below can be used in determining the real GDP after 5 years have passed since the real GDP is expected to increase at an annual growth of 5% per year as shown below:
FV=PV*(1+r)^n
PV is the current real GDP OF $8000
r is the growth rate of real GDP which is 3.2%
n is the timing involved in the computation
FV=$8000*(1+3.2%)^5=$9,364.58
