Compute the total capital stock and depreciation for the remainder of the five-year period. Round all answers to the nearest whole number.
Growth, Capital, Accumulation, and the Economics of Ideas: End of Chapter Problem
Let’s keep track of a nation’s capital stock for five years. Mordor starts off with 1,000 machines, and every year, 5% of the machines
In Year 1, Mordor has 1,000 machines, loses 0.05×1,000=50 machines to depreciation, and gains 75 machines, resulting in 1,000−50+75=1,025 machines at the start of Year 2. Compute the total capital stock and depreciation for the remainder of the five-year period. Round all answers to the nearest whole number.
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