You are saving money for a down payment on a new house. You intend to place $7,500 at the end of each year for three years into
2 answers:
Answer:
$37,848.9
Explanation:
We can use the interest rate formula to figure out how much is in the account after the first 3 years. The interest rate formula is show below:
Let me delineate what each part of this equation means:
A = The total amount
P = The initial amount of money put into the account
R = the interest rate
T = Time
The equation gives us the following:
- You place $7,500 each year for three years
- The interest rate is 5%
- At the end of the 4th year $10,000 will be placed in the account
First, let's calculate the P in the equation.
You put $7,500 each year for 3 years, so multiply 7,500 by 3.
Next, let's start putting everything into the equation, like this:
(When doing interest rate you have to move the decimal over twice)
Now that we have the equation, let's solve it!
After 3 years $26,046.6 is in the account.
But, don't forget the last part of the question!
But you have a fourth year too!
Add the $10,000 onto the $26,046.6
That equals $36,046.6.
Lets plug this back into the equation for the final year
Thus, the final answer will be $37,848.9
<em>Hope this helps!</em>
<em>- Kay :)</em>
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Answer:
lower per capita real gross domestic product (GDP) growth rates allow for less spending on automobiles.
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
Generally, the Gross Domestic Products (GDP) of a country's economy gives an insight to the social well-being of the country, such as;
Adjusting the Real gross domestic product (Real GDP) for price level changes by using a price index. This simply means, Real GDP is adjusted for inflation to measure the value of goods and services produced by a country in a specific period of time.
Mathematically,
Hence, residents of poor countries tend to have fewer automobiles per capita because lower per capita real gross domestic product (GDP) growth rates allow for less spending on automobiles.