The applicable formula is;
A = P(1-r)^n
Where;
A = Final purchasing power
P = Current purchasing power
r = inflation
n = Number of years when P changes to A
Confirming the first claim:
A = 1/2P (to be confirmed)
P = $3
r = 7% = 0.07
n = 10.25 years
Using the formula;
A = 3(1-0.07)^10.25 = 3(0.475) ≈ 3(0.5) = $1.5
And therefore, A = 1/2P after 10.25 years.
Now, give;
P = $9
A = 1/4P = $9/4 = $2.25
r = 6.5% = 0.065
n = ? (nearest year).
Substituting;
2.25 = 9(1-0.065)^n
2.25/9 = (1-0.065)^n
0.25 = (1-0.065)^n
ln (0.25)= n ln(1-0.065)
-1.3863 = -0.0672n
n = (-1.3863)/(-0.0672) = 20.63 years
To nearest year;
n = 21 years
Therefore, it would take approximately 21 years fro purchasing power to reduce by 4. That is, from $9 to $2.25.
Option E , ASEAN trading bloc would reduce trade barriers between China and Vietnam
Explanation:
The Association is a national intergovernmental body of ten countries in Southeast Asia that promotes intergovernmental cooperation and facilitates the integration of its members and others in the Asian economy, diplomacy, defense, the army, education and social-culture.
In and beyond the Asia-Pacific region, ASEAN regularly engages with other countries. ASEAN is a major partner in the Shanghai Cooperation Organization and operates a global network of allies and dialog members, many of them considered a financial superpower and central Asia-Pacific co-operation union.
The ASEAN Secretariat is headquartered in Jakarta, Indonesia, and is involved in numerous international affairs, and holds diplomatic missions all over the world.
Bringing products and services to consumers in the u.s. that were previously available only in other countries is an advantage of: international trade.
<h3>What is meant by international trade?</h3>
This is the term that is used to refer to the trade that is carried out between two different nations.
It is when the nations are able to engage in buying and selling the goods that they have in their home countries and taking the ones that they do not have from other countries.
Hence we can say that bringing products and services to consumers in the u.s. that were previously available only in other countries is an advantage of: international trade.
Read more on international trade here: brainly.com/question/15115779
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Indeed, most economists would argue that the best interests of international businesses are served by a <u>free-trade stance</u>.
<h3>What is a free-trade stance?</h3>
A free-trade stance is a government policy that does not restrict imports and exports because there are no import tariffs or export subsidies.
A free-trade stance is also known as laissez-faire policy because under a free-trade policy, goods and services are exchanged across international borders with little or no government interventions in the forms of tariffs, quotas, subsidies, or prohibitions.
Trade protectionism, which creates economic isolationism, is the direct opposite of the concept of free trade.
Thus, indeed, most economists would argue that the best interests of international businesses are served by a <u>free-trade stance</u>.
Learn more about the free-trade stance at brainly.com/question/10608502
Answer: 218.75%
Explanation:
In order to breakeven, the variable manufacturing cost would have to be the same as the fixed costs in addition to the administrative costs.
= Fixed costs + Administrative cost
= 1,200,000 + 550,000
= $1,750,000
Variable cost needs to be $1,750,000
It is currently at $800,000 so it needs to increase by:
= 1,750,000 / 800,000 * 100%
= 218.75%
