Is that really a question... I hope not.
The correct answer is b) increase; appreciate.
Since more and more people go in the country, more and more money will be required and produced. Since this money will not be surplus in the economy of the country they will gradually increase their value because of the growing demand for them, thus competing with the values with the other currencies, like the American Dollar (USD).
Answer:
Instructions are below.
Explanation:
Giving the following information:
Value at 18= $4,909
Interest rate= 3%
To calculate the final value, we need to use the following formula:
FV= PV*(1+i)^n
A) Number of years= 7
FV= 4,909*(1.03^7)= $6,307.45
B) Number of years= 47
FV= 4,909*(1.03^47)= $19,694.39
C) Finally, we need to determine the original investment. We need to isolate the present value from the formula:
PV= FV/(1+i)^n
PV= 4,909/(1.03^18)
PV= $2,883.52
