Question

A financial company has assets in countries A, B and C. Each year half of the money invested in country A stays in country A, and a quarter of the money invested in country A goes to country B and C each. For country B and C, one half of the money stays in each country and the other half is invested in country A. In the steady state, what is the percentage of the assets of the company that are invested in country A? 100% ● None of the other answers

Answer 1

Given data, A financial company has assets in countries A, B and C each year half of the money invested in country A stays in country A and a quarter of the money invested in country A goes to country b and c each let A_n, B_n, C_n, be amount of money in countries A, B, C is years in Then A_n + 1 = A_n/2 + B_n/2 + C_n/2 B_n + 1 = A_n/4 + B_n/2 C_n = 1 = A_n/4 + C_n/2 in steady state is \r\n A_n + 1 = A_n = A B_n + 1 = B_n = B C_n + 1 = C_n = c So, A = A/2 + B/2 + C/2 A = B + C B = A/4 + B/2 A = 2B So, 2B = B + C C = B (A, B, C) = (2B, B, B) % invested in country �A� is 2B 1/2B + B + B times 100 = 50% Rightarrow 100/2B = 50%