Answer: a. 10%
b. -30%
Explanation:
a. What is the percentage change in the price of milk?
Old price = $5.00
New price = $5.50
Percentage change = ($5.50 - $5.00)/$5.00 × 100
= 0.50/5.00 × 100
= 1/10 × 100
= 10%
Percentage change on price = 10%
b. What is the percentage change in the quantity demanded for Boo Berry Cereal?
Old quantity = 1000
New quantity = 700
Percentage change = (700 - 1000)/1000 × 100
= -300/1000 × 100
= -30%
The percentage change in the quantity demanded for Boo Berry Cereal is -30%.
frank and john can refer to the Gross Domestic Product (GDP) to understand how government economists view the price situation, GDP accounts for changes in price level and provide a more accurate figure of economic activities over a given period of time.
It will take 2 years because eaxh year you get 4% of the $2500 which means $100 a year
Answer:
8.13%
Explanation:
Annual return = [ (Total FV/Initial investment)^(1/n) ] -1
n = useful life of the project
Total Future Value = (22650*5) +5000
Total FV = $118,250
Initial investment = $80,000
Annual return = [ (118,250/80,000)^(1/5) ] -1
r = [ (1.478125^(1/5)] -1
r = 1.0813 - 1
r = 0.0813 or 8.13%
