The Gross National Product (GNP) of the United States in 1960 was about $2.19·10^{12}$ dollars. Suppose it increased at a rate of $3.17\%$ per year. Use this information to answer each of the questions below.

1. What was the predicted GNP in 1989?

   Hint (a):

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

   $y=2.19·10^{12}(1.0317)^{29}$

   Answer (a):

   The GNP in 1989 is about $5.41·10^{12}$ dollars.

2. Write an equation to model the GNP $t$ years after 1960.

   Hint (b):

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

   Answer (b):

   $y=2.19\left(10^{12}\right)(1.0317)^t$

3. What assumptions did you make in creating your model? How accurate do you think it is?

   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.