Answer:
It would be B because these politicians would improve the roads and the means of transportation
Solution:
Sum Present value of 60 payments
Rent 2000
Periods 60
Rate 12%
Present value of 60 payments $94,405 (Excel = PV( 1% , 60 , 2000))
Future value of these payments at t=9
Future value $1,03,249.99(Excel=FV(1%,9,94,405)
Periods 51
Rate 12%
Increased variety of goods Indonesian consumers have enjoyed more consumer surplus from their shoe purchases than they did before their nation adopted an international agreement on trade restrictions.
Answer: Option C.
<u>Explanation:</u>
Free trade is the trading and exchange of goods and services between one country and the other country. This is done without any restrictions on the borders of the country that is there is no duties, taxes and so on are to be paid for the trade.
With the increase in the free trade agreement, the variety which is available with the consumers in the market also increases satisfying their needs and wants.
To find the rate of return on common, use the given formula. CAGR = (EV/BV) 1/n -1
Where CAGR is the compounded annual growth rate, EV is the investment's ending value, BV is the investment's beginning value and n is the years.
Given
BV= $350,000 ; EV= $441,500, n= 1 year
Solution
CAGR =[ ($441,500 / $350,000) 1/1 ]-1
= [(1.26) 1] - 1
= 1.26 - 1
= 0.26 X 100
= 26%
So the rate return on common is 26%
