Question

saved Country- Value (thousands of dollars) Initial Value ($50 - $10,000) 1,300.00 Growth Rate: 2.3% 0.1% 10.0% Country-Y Initial Value ($50 - $10,000) 6,700.00 im N Growth Rate: 0.6% 0.1% 10.0% CALCULATIONS 0 5 10 15 20 25 30 35 40 Years Value in Country-X 10 years Country-Y $7,113.03 $7,551.52 $8,017.04 $1,631.92 $2,048.59 $2,571.65 20 years - Country-X --- Country-Y 30 years < Prev 21 of 22 Next > re to search OBI - Ô e o a e w

Answer 1

Doubling period = 72 / growth rate

(a) Country X doubling period = 72 / 2.3 = 31.30 years

(b) Country Y doubling period = 72 / 0.6 = 120 years

(c) Yes because what is initially smaller grows at a faster rate (Country X has smaller initial production but grows at higher rate than Country Y)

(d) In 60 years, country X will double its production (60/31.3) = 2 times

(e) In 60 years, country Y will double its production (60/120) = 0.5 = 0 times

(f) No