Answer:
No, the debt is not manageable because interest payments equal $96 million per year.
Explanation:
Annual interest payment for debt = 0.08*1.2B = $96 million
Only the interest payment is about 96% of government revenue, so its not manageable.
Answer:
$2,385,086
Explanation:
To answer this question, we need to use the present value of an ordinary annuity formula:

Where:
- A = Value of the annuity
- i = interest rate
- n = number of compounding periods
Because the interest rate is annual, it is convenient to convert it to a monthly rate.
4.5% annual rate = 0.37% monthly rate.
The number of compounding periods will be = 12 months x 30 years
= 360 months
Now, we simply plug the amounts into the formula:


You will need to have saved $2,385,086 if you plan to retire under the aforementioned circumstances.
Answer:
d. $1,000
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP = Consumption spending by households on durable and non durable goods and services + Investment spending by businesses + Government Spending + Net Export
Consumption spending = $200 + $200 + $100 = $500
Investment spending = $200 + $(500 - 400) = $300
Government spending = $200 + $100 = $300
Transfer payments aren't included in the calculation of GDP. So, the $200 spent on welfare and unemployment benefits and $300 on social security payments isn't included in the calculation of GDP.
Net export = Export- Import = $400 - $500 = $-100
GDP = $500 + $300 + $300 - $100 = $1000
I hope my answer helps you