Cujo invested $2,500 in an account earning 3.4% annual interest that is compounded semi-annually. How long will it take the inve
2 answers:
Answer:
10 years and 10 months.
Explanation:
Provided information we have,
Amount invested = $2,500
Earning interest rate = 3.4% annually
Compounded semiannually
Thus, period to be considered = 2 in a year
Interest rate =
Thus, effective interest rate = 1.7%
Now, according to future value of compounded rate @ 1.7% at a period 65 factor = 2.9913
Thus value will be $2,500 2.9913 = 7,478.25
That is approximate triple in value.
Thus, total period in number of years = 65/6 months = 10.833 years.
0.833 12 months = 10 months
That exactly means 10 years and 10 months.
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Answer:
Thailand:
Opportunity cost of computers = 300/20 = 15 tons of rice
US:
Opportunity cost of computers = 800/100 = 8 tons of rice
US has a comparative advantage in production of computers
Absence of trade:
Thailand consumes 150 tons of rice, it can consume = (300 - 150)/30 x 2 = 10 computers
US consumes 50 computers, it can consume = 400 tons of rice
After trade :
10 computers exchanged for 120 tons of rice
Thailand continues to consume 150 tons of rice, it will consume = 12 computers (=10 + 30/15)
US continues to consume 50 computers, it will consume = 440 tons of rice (=120 + 40 x 8)
Both would accept the proposal as both are better off with trade
Answer:
Option A) $5000
Explanation:
The explanation for this question is given in the attachment below.
