Consider an economy that is in steady state according to the Solow model. Now suppose that a temporary foreign aid program build
2 answers:
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Answer:
Mark will have $19,878.70 at the end of six years
Explanation:
Use the following formula to calculate the present value of cash flows
PV =
Where
A = Investment = $2,000
g = growth rate = 4%
r = 15%
n = 6
Placing values in the formula
PV =
PV = $8,594.11
Now calculate the future value in order to determine the amount Mark will have at the ned of six years
Future value =
Where
PV = $8,594.11
r = 15%
n = 6
Placing values in the formula
Future value =
Future value = $19,878.70
Answer:
Hence, the net income earned or net loss incurred by the business during the year $102,340.
Explanation:
