A company making tires for bikes is concerned about the exact width of its cyclocross tires. The company has a lower specificati
1 answer:
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Answer:
- 1. <em>For the amount to double</em>: <u>9.37 years</u>
- 2. <em>For the amount to triple</em>: <u>14.85 years</u>
Explanation:
The equation for continuosly compounded interest is:
Where:
- P is the amount that you invest today: $1,300
- F is the value after t years: the double or triple of $1,300
- r is the annual interest rate: 0.074
<u>1. For the amount to double:</u>
Substitute the values and solve for t:
<u>2. For the amount to triple:</u>
<u />
Answer: Option (c) is correct.
Explanation:
Given that,
Quantity demanded increases by = 30%
Price elasticity of demand = 2
Therefore,
Price elasticity of demand =
2 =
Percentage change in prices =
= 15%
Therefore, price of a particular good decreases by 15%.