Answer:
$1000
$1010
Explanation:
The formula for determining simple interest = principal x time x interest rate
The formula for determining compound interest = future value - amount invested
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
1000 X 0.01 X 1 = $10
Given the figures in the question, the simple interest each year would be $10 based on $1000
But the compound interest in year 2 = 1000 x (1.01)^2 = 1020.10
1020.10 - 1000 = 20.1
compound interest in year 2 = 20.1 - 10 = 10.1
or
1010 x 0.01 x 1 = 10.1
Based on the given values above, it is said that there are 50,000 people who are unemployed and 250,000 are employed. This means that the total number of people basing on these numbers is 300,000. So we just have to divide 50,000 by 300,000 and we get 0.17. Therefore, the unemployment rate is 17%. Hope this helps.
<span>When you invest you have a greater chance of losing your money than when you save.</span>
Answer:
$118,421
Explanation:
first we must calculate the expected value of the risky portfolio = ($70,000 x 0.5) + ($200,000 x 0.5) = $135,000
since your risk premium is 8% and the risk free rate is 6%m then you should discount the expected value by 8% + 6% = 14% to determine its current market price
= $135,000 / (1 + 14%) = $118,421
Answer: TRUE
Explanation: Gross Domestic Product ( GDP) can be described as the market value of all goods and services produced in a country within a particular time period which is usually a year.
The equation for finding GDP is given as -
GDP = Consumption + Investment + Government Spending + ( Exports - Imports)
Nominal GDP can be described as the market value of all goods and services produced in a country within a particular time period using current market prices.
Real GDP can be described as the market value of all goods and services produced in a country within a particular time period using base year prices. Using base year prices to calculate real GDP adjusts for inflation.
