Answer:
Concept & example of Opportunity Cost
Explanation:
Opportunity Cost is the cost of next best alternative foregone, while choosing an alternative. This arises because of 'choice' problem, due to unlimited wants & limited resources - having alternative uses.
Eg : If I can have 2 chapatis or a bowl of rice. And, I eat a bowl of rice. Then, 'opportunity cost' of a rice bowl is - the next best available '2 chapattis' foregone for the former.
Answer:
$400
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
Inventory grew by (200 - 100) $100
$50 of value was created
total gdp = $100 + $250 + 50 = $400
Answer:
The first five terms of the sequence are:
First year: $3270.00
Second year: $3564.30
Third year: $3885.09
Fourth year: $4234.75
Fifth year: $4615.87
Explanation:
When we're dealing with compound interest rates we're dealing with interests being re-invested into the original investment. This means that the new interests of one period will bear interests in the next period. This can be simply calculated using the compound interest formula.
The formula for compound interest rates is 
Where:
<em>P</em> is the principal amount being invested,
<em>i</em> is the interest rate,
<em>n</em> is the number of years.
So for the first year we replace in the formula with the given values:
3000 ×
= $3270
And for the rest of the years we only need to modify the value of <em>n</em>.
For the second year we'd have:
3000 ×
= $3564.3
And so on.