A mandate is an informal order that is given by a higher authority to suggest change. Please select the best answer from the cho
1 answer:
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Answer:
(a) $43,656.90
(b) $33,698.70
(c) $43,967.70
Explanation:
Future Value of annuity shall be:
(a) 10% for 8 years, Semiannually compounded
In this since the interest is compounded semiannually, the effective interest rate = 10/2 = 5%
Future Value of $1 in 8 years with 10% interest compounded semiannually = 2.0789
Value of $21,000 = $21,000 2.0789 = $43,656.90
(b) 12% for 4 years, Quarterly Compounded
In this since the interest is compounded quarterly, that is 4 times in a year, effective interest rate = 12/4 = 3%
Future value of $1 in 4 years with 12% interest compounded quarterly = 1.6047
Value of $21,000 = $21,000 1.6047 = $33,698.70
(c) 36% 25 months, Monthly
In this since the interest is compounded monthly effective interest rate = 36/12 = 3%
Therefore, Future Value of $1 in 25 months @36% compounded monthly = $2.0937
Value of $21,000 = $21,000 2.0937 = $43,967.70
Answer:
correct option is B. about 30 years
Explanation:
given data
real per capita GDP west = $10,000
annual growth rate = 2.33%
real per capita GDP east = $2,500
annual growth rate = 7%
to find out
How many years will it take for East to catch up GDP of West
solution
we know here that future value is equal to real GDP of west after time will be
future value = real per capita GDP west ×
future value = 10000 × .....1
and
future value = real per capita GDP east ×
future value = 2500 × .....2
compare equation 1 and 2
10000 × = 2500 ×
4 =
t = about 30 years
so correct option is B. about 30 years