Answer:
$2,980.4
Explanation:
To find the answer, we use the future value of an investment formula:
FV = PV(1 + i)^n
Where:
- FV = Future value (the result we are looking for
- PV = Present value (the initial values that the question has given us)
- i = interest rat
- n = number of compounding periods
For the first $640:
FV = $640(1 + 0.0760)^1
FV = $688.6
For the $690
FV = $688.6 + $690 (1 + 0.0760)^1
FV = $1,431
For the second $690
FV = $1,431 + $690 (1 + 0.0760)^1
FV = $2,173.4
For the final $750
FV = $2,173.4 + $750 (1 + 0.0760)^1
FV = $2,980.4
So at the end of four years, you will have $2,980.4.
Answer: it experiences a capital inflow.
Explanation:
A trade deficit is a situation that occurs when the imports of a country is greater than the exports of the country. This is usually measured in monetary terms. For example, let's say in a certain year, the United States exported $3 trillion in goods and it imported goods worth $4 trillion, th n the trade deficit will be ($4 trillion - $3 trillion) = $1 trillion.
Trade deficit can be caused because of capital deficiency. This will then lead to capital flowing into the country that is experiencing the trade deficit.
Answer:
Hersey's bond = $1125.513
Mars bond = $1172.259
Explanation:
Hersey bond;
Period(t) = 10years = 40(quartely)
Coupon (C) = $30
Rate (r) = 0.1 = 0.025(quarterly)
Pay at maturity(p) = $1000
Using the both present value (PV) and compound interest formula ;
PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]
PV = [30×(1-(1.025)^-40)÷0.025] + [1000÷(1.025)^40]
PV =( 753.083251562) + (372.4306236)
PV = $1125.513
Mars bond;
Period(t) = 20years = 80(quartely)
Coupon (C) = $30
Rate (r) = 0.1 = 0.025(quarterly)
Pay at maturity(p) = $1000
PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]
PV = [30×(1-(1.025)^-80)÷0.025] + [1000÷(1.025)^80]
PV =(1033.55451663) + (138.704569467)
PV = $1172.259
Answer: $36 billion
Explanation: In this scenario the total national income formula is manipulated so that the wages figure is deduced. Total national income, also known as gross national income (GNI), is the total amount of cash earned by a country's businesses and individuals. It also forms part of the gross domestic product (GDP) formula. It is cacluated as follows:
Total national income = rent + interest + profits + wages
Total national income forms a part of the GDP formula in the following way:
GDP = Total national income + net foreign factor income + sales taxes + depreciation
Because none of the other GDP figures have been given, they fall away in this scenario. This means that when manipulated so that the wages figure is deducted, the final answer is as follows:
65 billion (GDP) = $7 billion (rent) + $15 billion (interest) + $7 billion (profits) + wages
∴Wages = $65 billion (GDP) - $7 billion (rent) - $15 billion (interest) - $7 billion (profits)
= $36 billion
