Answer:
1 +1R4= {(1 +1R3)(1 + E(4r1) +L4)}1/4
1.0500 = {(1.0475)^3(1 + 0.0525 +L4)}1/4
(1.0500)^4= (1.0475)3^(1 + 0.0525 +L4)
(1.0500)^4/(1.0475)^3= 1 + 0.0525 + L4
(1.0500)4/(1.0475)^3-1.0525
L4= .0050358564 = 0.504%
This is an education app... thanks for the points tho lol
Answer:
Wage year 4= $12222.19
Explanation:
Giving the following information:
Each additional year of education causes future wages to rise by 7 percent.
A person with 12 years of education makes $21 000 per year.
A person with 4 years of education=$?
We will use the present value formula to calculate the wage in year 0. Then with the final value formula calculate the year 4 wage.
PV= FV/[(1+r)^n]
FV=final value at t time
r= rate
n= period of time
PV= 21000/(1,07^12)= $9324. 2511
Final Value= PV*(1+r)^t
Final Value year 4= 9324.2511*(1,07^4)= $12222.19
Answer:
b. works better at correcting inflationary gaps than recessionary gaps.
Explanation:
The self correcting mechanism is a automatic process in which the aggregate market eliminates an inflationary gap created by a short-run equilibrium that is greater than full employment through increases in wages and other resource prices.
She can use images to show the team the the products they plan to launch.
She can also add a graph to show where these products will be most popular.
