Answer:
Domestic Value added = =$500
Explanation:
<em>Gross domestic product (GDP) </em><em>which is the total market value of all the final goods and services produced in a country over a given period of time. The GDP can be calculated using the value added approach.</em>
<em>Here the GDP figure is ascertained by summing the amount of additional value created by each factor of production at each stage of the production process of the final product.</em>
Only the values added are summed, the cost of the inputs or intermediate goods are not included.
Value added at a stage = Market value and the end of the stage - value of input at the beginning of the stage
So we can apply this to the question
Domestic Value added
= $900 - $400
=$500
Answer:
a. Write a function that determines the investment's value (in dollars) in terms of the number of years t since the investment was made: 13,000 * (1 + 0.0236/12)^(12t) = 13,000 * 1.001967^12t
b. The investment's value after 20 years: $20,833.58
c. How long it will take for the investment's value to double: 352.8 months or 29.4 years.
Explanation:
a. As the interest rate is 2.36% APR compounded monthly, the monthly interest rate is 2.36%/12 and the Effective annual rate of is ( 1 + 0.0236/12)^12 - 1
=> After t years of investment, the value of the account is decided by the function: Interest receipt + Initial investment = Initial investment * [ ( 1 + 0.0236/12)^(12t) - 1 ] + Initial investment = Initial investment * 1.001967^12t = 13,000 * 1.001967^12t
b. Apply the function above, we have: The investment's value after 20 years = 13,000 * 1.001967^12*20 = 20,833.58
c. The investment's value is double means: 1.001967^12t = 2 <=> 12t = 352.8
<=> t = 29.4 => it will take for the investment's value to double: 352.8 months or 29.4 years.
<span>Answer:
E(R) = 3.80 + .88(9.60 - 3.80) = 8.90 percent</span>