High School

An economy initially has 200 units of physical capital per worker. Each year, it increases the amount of physical capital by 10%. According to the aggregate production function for this economy, each 1% increase in physical capital per worker, holding human capital and technology constant, increases output per worker by 0.25%.

In three years' time, what is the level of physical capital per worker in this economy?

A. 266.2 units
B. 200 units
C. 242 units