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Keith_Richards [23]
3 years ago
8

Suppose that real GDP per capita in the United States is $49,000. If the long-term growth rate of real GDP per capita is 1.6% pe

r year, how many years will it take for real GDP per capita to reach $98,000? Instructions: Enter your answer as a whole number. years
Business
1 answer:
Stells [14]3 years ago
4 0

Answer:

n = 43.6673555

it will take 43.67 year to achice a real GDP of 98,000

Explanation:

we solve for time of a future lump-sum:

PV (1+r)^n = FV\\(1+r)^n = FV / PV\\

we use logarithmics properties:

(1+r)^n = FV/PV\\log_{1+r}FV/PV = n\\n = \frac{log FV/PV}{log(1+r)}

PV 49,000

FV 98,000

rate 1.6%

n = \frac{log 98,000/49,000}{log(1+0.016)}

n = 43.6673555

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Any point on a country's production possibilities frontier represents a combination of two goods that an economy can produce. A production possibility frontier also know as PPF shows the maximum output that two goods or services can achieve when all of the resources are being used. For this graph to show the true possibilities, all of the resources have to be used to their full potential as efficiently as possible.

4 0
4 years ago
Insurance that pays all expenses generated by the insured activity is known as:
maks197457 [2]

Answer:

The answer is D. first-dollar insurance coverage.

Explanation:

First dollar insurance coverage is a kind of insurance policy that has no deductible or copay, where  the insurance company starts covering costs on the first dollar claimed, and in which the insurer assumes payment the moment an insurable event happens.

While there is no deductible, the amount that the insurer will pay out is often lower when compared with similar plans which have a deductible, or the premiums for the first dollar plan will be higher.

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3 years ago
Your company expects to receive 5,000,000 Japanese yen 60 days from now. You decide to hedge your position by selling Japanese y
larisa [96]

Answer:

$47,500

Explanation:

Calculation for How many dollars will you receive

Using this formula

Dollar to receive=Expected Japanese yen×Forward rate

Let plug in the formula

Dollar to receive= ¥5,000,000 x $.0095/¥

Dollar to receive= $47,500

Therefore the amount of dollars will you receive will be $47,500

8 0
3 years ago
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $80,000 or $200,000, with equal
Bingel [31]

Answer:

Required:

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8 0
3 years ago
Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s cur
LiRa [457]

Answer:

Trend Analysis helps to interpret the changes in account balances over certain period of time. Trends in percentages is presented in the table below.

* Excel solution is attached for your reference.

Explanation:

For Rotorua Product Ltd, data trends (in percentages) can be computed using the following formula:

                       Trend in % = (Current Year ÷ Base Year) × 100

                          where: Base Year is assumed to be Year 1

                                      Year 1 Year 2  Year 3   Year 4     Year 5

Sales                                 100.0% 107.9%     112.0%   121.0%     127.7%

     

Current Assets    

Cash                                   100.0% 132.5%   112.6%     90.1%      95.4%

Accounts receivable, net   100.0% 102.9%   107.1%     119.7%      136.8%

Inventory                           100.0% 108.3%   104.2%     109.9%     113.6%

Total current assets           100.0%  108.1%    105.6%     111.8%      119.9%

     

Current liabilities                   100.0% 108.5%   103.7%     105.5%      128.0%

Download xlsx
5 0
4 years ago
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