Answer:
=$337.43
Explanation:
The value of each of the coins after 50 years is the future value after 50 years at their respective interest rate.
The formula for future value is FV = PV × (1+r)n
For the first coin at 5.2 percent,
Fv = 100 x ( 1 + 5.2/100 ) 50
Fv =100 x (1+ 0.052) 50
Fv = 100 x 12. 61208795
Fv = $1,261. 21
For the second coin at 5.7 percent,
Fv = 100 x (1 + 5.7 /100)50
Fv =100 x (1 + 0.057 )50
Fv = 100 x 15.98
Fv = 1, 598. 64
the difference in value will be
=$1598.64 - $1,261.21
=$337.43
Generally speaking, a
business message expressing negative news (reader will react negatively) should
be organized indirectly. The message should be delivered among other
information and should not stand out. This is only appropriate if it is
practical to deliver the message in this way (immediate action is not
required). A more positive message should be prominent in the communication and
expressed in a more direct way, since it is assumed that the reader will react
positively.
Answer: Option A
Explanation: In simple words, elasticity refers to the change in demand for a product due to change in its price.
If the price for the gasoline remains high in the long run then at one point substitution effect will come into play and consumers will shift their demand to the alternatives available.
However the product like gasoline will not show decrease in demand in the short run due to price as it more of an essential good to daily life.
Thus, the correct option is A.
To solve this problem, we first make a chart that shows the spending pattern of $90 million over 23 years.
$90 million at 11% = [math]\frac{90 \times 1.11^{23}}{100}=903.478[/math]. The future worth at the end of the 23-year is approximately $903,478.
Since the problem does not provide a standard amount of time that people usually use to measure interest rates, we can infer that this rate should be 10% per year.
Using 10% per year instead of 11%:
$90 million at 10% = [math]\frac{90 \times 1.10^{23}}{100}=897.507[/math]. The future worth at the end of the 23-year is approximately $897,507.
Since the total amount that was spent on development over a period of 23 years is $90 million and the answer in our problem has to be in millions, we have to adjust the amount.
$90 million x 100 = $9 billion. The future worth at the end of the 23-year is approximately 9 billion dollars.
