The GDP in Japan is [tex] \$4.87 \text{ trillion} [/tex]. The rate of inflation is [tex] 2.5\% [/tex]. If the population of Japan is [tex] 127{,}502{,}000 [/tex], find the per capita GDP in this country.

1. Calculate the Real GDP:
\[ \text{Real GDP} = \text{GDP} - (\text{GDP} \cdot \text{Inflation Rate}) \]

2. Calculate the Per Capita GDP:
\[ \text{Per Capita GDP} = \frac{\text{Real GDP}}{\text{Population}} \]

3. Per Capita GDP:
\[ \text{Per Capita GDP} = \$[?] \]

Round to the nearest cent.



Answer :

To solve this problem, we start by understanding and using the given details step-by-step:

1. Given Information:
- GDP: \[tex]$4.87 trillion (which is equivalent to \$[/tex]4.87 \times 10^{12}[tex]$). - Inflation rate: 2.5\% (or 0.025 as a decimal). - Population: 127,502,000. 2. Calculate the Real GDP: The formula for calculating the Real GDP is given by: \[ \text{Real GDP} = \text{GDP} - (\text{GDP} \times \text{Inflation Rate}) \] Plugging in the given values: \[ \text{Real GDP} = 4.87 \times 10^{12} - (4.87 \times 10^{12} \times 0.025) \] Compute the product of GDP and the inflation rate: \[ 4.87 \times 10^{12} \times 0.025 = 0.12175 \times 10^{12} \] Subtract this from the original GDP: \[ \text{Real GDP} = 4.87 \times 10^{12} - 0.12175 \times 10^{12} = 4.74825 \times 10^{12} \] Therefore, the Real GDP is 4.74825 trillion dollars, which written out in full numerical form is: \[ \text{Real GDP} = 4,748,250,000,000 \, \text{(dollars)} \] 3. Calculate Per Capita GDP: The formula for Per Capita GDP is: \[ \text{Per Capita GDP} = \frac{\text{Real GDP}}{\text{Population}} \] Substituting the Real GDP and population: \[ \text{Per Capita GDP} = \frac{4,748,250,000,000}{127,502,000} \] Perform the division: \[ \text{Per Capita GDP} = 37,240.5902512 \] Rounding to the nearest cent: \[ \text{Per Capita GDP} = \$[/tex]37,240.59
\]

Therefore, the Per Capita GDP in Japan, rounded to the nearest cent, is:

[tex]\[ \boxed{\$37,240.59} \][/tex]

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