The Gross National Product (GNP) of the United States in 1960 was $1.665·10^{12}$ dollars. Until 1989 it increased at a rate of $3.17\%$ per year.
Use this information to answer each of the questions below.

1. What was the GNP in 1989?

   Hint (a):

   $y=1.665·10^{12}(1.0317)^{29}$

   Multiply the GNP in 1960 by $1.0317$ twenty-nine times.

   Answer (a):

   The GNP in 1989 is $4.116·10^{12}$ dollars.

2. Write an equation to represent the GNP $t$ years after 1960, assuming that the rate of growth remained constant.

   Hint (b):

   Remember that the GNP increases by $3.17\%$ each year.

   Answer (b):

   $y=1.66(10^{12})(1.0317)^t$

3. Do you think the rate of growth really remains constant? Explain.

   Hint (c):

   If you don’t know or you aren’t sure, try looking it up on the internet. Look for a graph. You could enter GNP USA into a search engine.