3 years ago

(iii) Suggest reasons why the USA wants to reduce its dependence on imported oil.

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1 answer:

Vlad1618 [11]3 years ago

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In case of drastic emergency or fallout if the us were to stand alone it would need supplies it could get on its own

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Explanation:

First, we find the lump sum to pay under the bank terms. The interest rate is 0.5% monthly, which is equivalent to 6.2% annually.

The formula is:

$P (1 + i)^{n} = X$

Where:

P = Present value
i = interest rate
n = number of compounding periods of the interest rate
X = lump sum we need to find

Now, we simply plug the amounts into the formula:

$$21,000 (1 + 0.062)^{8} = X\\$

$33,979 = X$

Next, we find the value of the lump sum under the company's preferred terms:

$21,000 (1 + 0.06)^{8} = X$

$33,470 = X$

Finally, we susbtract the two figures to find the difference:

$39,979 - 33,470$ $= 509$

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