Answer:
Overhead includes all except variable cost.
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.
Answer:
a. What is the unemployment rate in this economy?
The formula is
Unemployment Rate = Unemployed People / Labor Force
Now, we plug the amounts into the formula:
Unemployment Rate = 9.0 / 157.2
= 0.0573
= 5.73%
b. What is the labor force participation rate?
Labor Force Participation Rate = Labor Force / Population Over 16
= 157.2 / 249.7
= 0.6296
= 62.96%
c. Suppose that 1 million currently unemployed workers decide to no longer actively look for work. What is the unemployment rate in this economy now?
1 million people have now left the labor force, and they also represent 1 million less unemployed.
Unemployment Rate = 8.0 / 156.2
= 0.0512
= 5.12%
d. What is the new labor force participation rate? %
Labor Force Participation Rate = Labor Force / Population Over 16
= 156.2 / 249.7
= 0.6256
= 62.56%
$12.45. Twelve dollars and forty five cents
