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Alchen [17]
3 years ago
12

If GDP is expected to increase at a steady rate of 3% per year, how many years would it take for living standards to double

Business
1 answer:
Troyanec [42]3 years ago
5 0

Answer:

24 years

Explanation:

In a situation where a country GDP which is fully known as GROSS DOMESTIC PRODUCT was been expected to increase or grow at a rate of 3% per year or per annual which means that it will actually takes up to 24 years for a country economy living standard to double .

Therefore the numbers of years it would take for a country living standards to double will be 23 years.

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Given the following owner’s income and expense estimates for an apartment property, formulate a reconstructed operat-ing stateme
scoundrel [369]

Answer:

$363,000

Explanation:

Calculation for the property’s indicate market value.

First step

Operating Statement

PGI: $66,000

(10 units x $550 x 12 month )

Less: Vacancy Loss(3,300)

(5%*66,000)

EGI:62,700

Less: Operating Expenses

Power$2,200

Heat1,700

Janitor4,600

Water3,700

Maintenance4,800

Management3,000

Reserve for CAPX2,800

Total Operating Expenses$22,800

Net Operating Income$39,900

(62,700-22,800)

Second step is to find the property’s indicate market value.

Using this formula

Market Value=NOI/ Ro

Let plug in the formula

Market Value=$39,900/11.0%

Market Value=$363,000

Therefore the property’s indicate market value is

$363,000

6 0
3 years ago
Which of the following statements about operations management in the service sector is most accurate? Operations management in t
VikaD [51]
Operations management in the service sector has grown more rapidly than the manufacturing sector. Operations management is the implementation aspect of management.
8 0
3 years ago
Read 2 more answers
AB When considering two mutually exclusive projects, the firm should always select the project whose internal rate of return is
Mnenie [13.5K]

Answer:

False

Explanation:

If an investment project can be repeated, i.e. its life cycle can be extended by reinvesting, the NPV of the project will change.

When considering two mutually exclusive projects, the NPV method should always be considered before the IRR as a means of evaluating which project should be carried out.

3 0
3 years ago
Read 2 more answers
Bond J has a coupon of 7.6 percent. Bond K has a coupon of 11.6 percent. Both bonds have 12 years to maturity and have a YTM of
elena55 [62]

Answer:

Bond J has a coupon of 7.6%  

Bond K has a coupon of 11.6%

12 years to maturity and YTM of 8.2%

first we must determine the current market price of both bonds using the yield to maturity formula:

YTM = {C + [(FV - PV) / n]} /  [(FV + PV) / 2]

  • YTM = 8.2%
  • C = coupon payment = $76 and $116
  • FV = face value or value at maturity = $1,000
  • PV = present value or current market value = ???
  • n = 12 years

current market value of Bond J:

0.082 = {76 + [(1,000 - PV) / 12]} /  [(1,000 + PV) / 2]

[(1,000 + PV) / 2]  x 0.082 = 76 + [(1,000 - PV) / 12]

41 + 0.041PV = 76 + 83.33 - 0.083PV

0.124PV = 118.33

PV = 118.33 / 0.124 = $954.27

current market value of Bond K:

41 + 0.041PV = 116 + 83.33 - 0.083PV

0.124PV = 158.33

PV = 158.33 / 0.124 = $1,276.85

a. If interest rates suddenly rise by 2.2 percent, what is the percentage price change of these bonds?

YTM = {C + [(FV - PV) / n]} /  [(FV + PV) / 2]

  • YTM = 8.2% + 2.2% = 10.4%
  • C = coupon payment = $76 and $116
  • FV = face value or value at maturity = $1,000
  • PV = present value or current market value = ???
  • n = 12 years

market value of Bond J:

0.102 = {76 + [(1,000 - PV) / 12]} /  [(1,000 + PV) / 2]

[(1,000 + PV) / 2]  x 0.102 = 76 + [(1,000 - PV) / 12]

102 + 0.051PV = 76 + 83.33 - 0.083PV

0.134PV = 157.33

PV = 57.33 / 0.134 = $427.84

market value of Bond K:

102 + 0.051PV = 116 + 83.33 - 0.083PV

0.134PV = 97.33

PV = 97.33 / 0.134 = $726.34

Bond J's market price will decrease by ($427.84 - $954.27) / $954.27 = -55.17%

Bond K's market price will decrease by ($726.34 - $1,276.85) / $1,276.85 = -43.11%

b. If interest rates suddenly fall by 2.2 percent, what is the percentage price change of these bonds?

YTM = {C + [(FV - PV) / n]} /  [(FV + PV) / 2]

  • YTM = 6%
  • C = coupon payment = $76 and $116
  • FV = face value or value at maturity = $1,000
  • PV = present value or current market value = ???
  • n = 12 years

current market value of Bond J:

0.06 = {76 + [(1,000 - PV) / 12]} /  [(1,000 + PV) / 2]

[(1,000 + PV) / 2]  x 0.06 = 76 + [(1,000 - PV) / 12]

30 + 0.030PV = 76 + 83.33 - 0.083PV

0.113PV = 129.33

PV = 129.33 / 0.113 = $1,144.51

current market value of Bond K:

30 + 0.030PV = 116 + 83.33 - 0.083PV

0.113PV = 169.33

PV = 169.33 / 0.113 = $1,498.50

Bond J's market price will increase by ($1,144.51 - $954.27) / $954.27 = 19.94%

Bond K's market price will increase by ($1,498.50 - $1,276.85) / $1,276.85 = 17.36%

8 0
3 years ago
The market for chewing gum is in equilibrium with a current price of 50 cents per pack and a quantity of 100,000 packs per day.
frez [133]

Answer:

A) an increase in the price of other kinds of candy

Explanation:

If the price of substitute products (other types of candy) increases, then the suppliers of chewing gum can increase their price without the quantity demanded decreasing. If the decrease in the price of chewing gum is smaller than the increase in the price of substitute products, the quantity demanded will increase.

If there was a price increase of the main ingredients used to produce chewing gum, then the supply curve would shift to the left (option B is wrong).

If the workers signed an agreement that lowered their wages, then the supply curve would shift to the right (option C is wrong).

A decrease in the number of young people in the market would decrease the quantity demanded for chewing gum, which in turn would decrease the equilibrium price (option D is wrong).

A decrease in income would also decrease the quantity demanded, which would in turn decrease the equilibrium price (option E is wrong).

5 0
3 years ago
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