ADVANCED ANALYSIS To fund its wars against Napoleon, the British government sold consol bonds. These bonds were "perpetuities" because they would pay £4 every year in perpetuity (forever). Instructions: Enter your answers rounded to 1 decimal place. a. If a citizen could purchase a consol for £50, what would the consol's annual interest rate be? 12.0 * percent What if the price were £100? 6.0 8 percent What if the price were £200? 3.0 8 percent
ADVANCED ANALYSIS To fund its wars against Napoleon, the British government sold consol bonds. These bonds were "perpetuities" because they would pay £4 every year in perpetuity (forever). Instructions: Enter your answers rounded to 1 decimal place. a. If a citizen could purchase a consol for £50, what would the consol's annual interest rate be? 12.0 * percent What if the price were £100? 6.0 8 percent What if the price were £200? 3.0 8 percent
Chapter1: Making Economics Decisions
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![ADVANCED ANALYSIS To fund its wars against Napoleon, the British government sold consol bonds. These bonds were called
"perpetuities" because they would pay £4 every year in perpetuity (forever).
Instructions: Enter your answers rounded to 1 decimal place.
a. If a citizen could purchase a consol for £50, what would the consol's annual interest rate be?
12.0
* percent
What if the price were £10O?
6.0 8 percent
What if the price were £200?
3.0 8 percent](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b776bf2-d29f-42e1-9bec-7245aff8b9b9%2F342767a4-33e6-444f-baa2-e8f5742600d5%2Fhkrv31h_processed.png&w=3840&q=75)
Transcribed Image Text:ADVANCED ANALYSIS To fund its wars against Napoleon, the British government sold consol bonds. These bonds were called
"perpetuities" because they would pay £4 every year in perpetuity (forever).
Instructions: Enter your answers rounded to 1 decimal place.
a. If a citizen could purchase a consol for £50, what would the consol's annual interest rate be?
12.0
* percent
What if the price were £10O?
6.0 8 percent
What if the price were £200?
3.0 8 percent
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