The population of a country Dnalgne is 90 million in 1997 and increasing at a rate of 0.1 million per year. The average annual income of a person in Dnalgne during 1997 was 25000 dollars per year and increasing at a rate of 600 dollars per year. How quickly was the total income of the entire population rising in 1997?

Question

Aaron Donovan

Business

19 July, 22:05

The population of a country Dnalgne is 90 million in 1997 and increasing at a rate of 0.1 million per year. The average annual income of a person in Dnalgne during 1997 was 25000 dollars per year and increasing at a rate of 600 dollars per year. How quickly was the total income of the entire population rising in 1997?

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Answers (1)

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Jaylene Buck · Answer 1

The answer is: 2.514% in percentage term or $56,560 million in absolute term.

Explanation:

The entire population income of Dnalgne in the beggining of 1997 = Total population of Dnalgne in the beginning of 1997 x average annual income of a person in Dnalgne in the beginning of 1997 = 90 million x 25,000 = $2,250,000 million

The poplulation of Dnalgne at the end of 1997 = 90 million + 0.1 million = 90.1 million; The average annual income of a person in Dnalgne at the end of 1997 = 25,000 + 600 = $25,600

The entire population income of Dnalgne in the end of 1997 = Total population of Dnalgne at the end of 1997 x average annual income of a person in Dnalgne at the end of 1997 = 90.1 million x 31,000 = $2,306,560 million

Thus. the rise in absolute number is $2,306,560 million - $2,250,000 million = $56,560 million or 56,560/2,250,000 = 2.514% in percentage term.