GRAPH SETTINGS Reset Country-X Initial Value 1,000.00 Value (thousands of dollars) ($50 – $10,000) [Country-X = Country-Y] Growth Rate: 3% 10 9 0.1% 10.0% 8 Country-Y 7 Initial Value 6 2,000.00 ($50 – $10,000) 5 4 Growth Rate: 1% 3 0.1% 10.0% 1 35.4 yrs. E CALCULATIONS 5 10 15 20 25 30 35 40 Years Value in Country-X Country-Y 10 years $1,343.92 $2,209.24 20 years $1,806.11 $2,440.38 30 years $2,427.26 $2,695.70 Country-X Country-Y Instructions: Modify the settings in the interactive tool as needed to answer the questions below. Suppose country X produces $2000 of goods and services per year, and country Y produces $2200 per year. Both countries experience 7.2% growth per year, a) According to the Rule of 72, how many years should it take for country X's production to reach $4000? years b) According to the calculations window, what is Country X's production after 10 years? (report your answer exactly as shown in the table) c) What is country Y's production after 10 years? (report your answer exactly as shown in the table) d) Country Y's initial production was 10% higher than country X's production ($2200 / $2000 = 1.10 = 110%). When both grow at the same rate, how much larger is country Y's production after 10 years? (round your calculation to a tenth of a percent before choosing your answer). Oroughly 10% higher Omore than 10% higher Oless than 10% higher revised, dar: 10-08-2019
GRAPH SETTINGS Reset Country-X Initial Value 1,000.00 Value (thousands of dollars) ($50 – $10,000) [Country-X = Country-Y] Growth Rate: 3% 10 9 0.1% 10.0% 8 Country-Y 7 Initial Value 6 2,000.00 ($50 – $10,000) 5 4 Growth Rate: 1% 3 0.1% 10.0% 1 35.4 yrs. E CALCULATIONS 5 10 15 20 25 30 35 40 Years Value in Country-X Country-Y 10 years $1,343.92 $2,209.24 20 years $1,806.11 $2,440.38 30 years $2,427.26 $2,695.70 Country-X Country-Y Instructions: Modify the settings in the interactive tool as needed to answer the questions below. Suppose country X produces $2000 of goods and services per year, and country Y produces $2200 per year. Both countries experience 7.2% growth per year, a) According to the Rule of 72, how many years should it take for country X's production to reach $4000? years b) According to the calculations window, what is Country X's production after 10 years? (report your answer exactly as shown in the table) c) What is country Y's production after 10 years? (report your answer exactly as shown in the table) d) Country Y's initial production was 10% higher than country X's production ($2200 / $2000 = 1.10 = 110%). When both grow at the same rate, how much larger is country Y's production after 10 years? (round your calculation to a tenth of a percent before choosing your answer). Oroughly 10% higher Omore than 10% higher Oless than 10% higher revised, dar: 10-08-2019
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![GRAPH
SETTINGS
Reset
Country-X
Initial Value
($50 – $10,000)
1,000.00
Value (thousands of dollars)
[Country-X = Country-Y]
Growth Rate: 3%
10
0.1%
10.0%
8
Country-Y
Initial Value
2,000.00
($50 – $10,000)
5
4
Growth Rate: 1%
3
0.1%
10.0%
2
1
35.4 yrs.
CALCULATIONS
10
15
20
25
30
35
40
Years
Value in
Country-X
Country-Y
10 years
$1,343.92
$2,209.24
20 years
$1,806.11
$2,440.38
30 years
$2,427.26
$2,695.70
Country-X
Country-Y
Instructions: Modify the settings in the interactive tool as needed to answer the questions below.
Suppose country X produces $2000 of goods and services per year, and country Y produces $2200 per year. Both countries experience 7.2% growth
per year,
a) According to the Rule of 72, how many years should it take for country X's production to reach $4000?
years
b) According to the calculations window, what is Country X's production after 10 years?
(report your answer exactly as shown in the table)
c) What is country Y's production after 10 years?
(report your answer exactly as shown in the table)
d) Country Y's initial production was 10% higher than country X's production ($2200 / $2000 = 1.10 = 110%). When both grow at the same rate, how
much larger is country Y's production after 10 years? (round your calculation to a tenth of a percent before choosing your answer).
Oroughly 10% higher
Omore than 10% higher
Oless than 10% higher
revised, dar: 10-08-2019](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a5ac3c6-e4ab-423a-91e1-ff33bdae0d07%2F8165f460-60b4-40e3-9f87-51c85ed57c13%2Fvaw9zi_processed.png&w=3840&q=75)
Transcribed Image Text:GRAPH
SETTINGS
Reset
Country-X
Initial Value
($50 – $10,000)
1,000.00
Value (thousands of dollars)
[Country-X = Country-Y]
Growth Rate: 3%
10
0.1%
10.0%
8
Country-Y
Initial Value
2,000.00
($50 – $10,000)
5
4
Growth Rate: 1%
3
0.1%
10.0%
2
1
35.4 yrs.
CALCULATIONS
10
15
20
25
30
35
40
Years
Value in
Country-X
Country-Y
10 years
$1,343.92
$2,209.24
20 years
$1,806.11
$2,440.38
30 years
$2,427.26
$2,695.70
Country-X
Country-Y
Instructions: Modify the settings in the interactive tool as needed to answer the questions below.
Suppose country X produces $2000 of goods and services per year, and country Y produces $2200 per year. Both countries experience 7.2% growth
per year,
a) According to the Rule of 72, how many years should it take for country X's production to reach $4000?
years
b) According to the calculations window, what is Country X's production after 10 years?
(report your answer exactly as shown in the table)
c) What is country Y's production after 10 years?
(report your answer exactly as shown in the table)
d) Country Y's initial production was 10% higher than country X's production ($2200 / $2000 = 1.10 = 110%). When both grow at the same rate, how
much larger is country Y's production after 10 years? (round your calculation to a tenth of a percent before choosing your answer).
Oroughly 10% higher
Omore than 10% higher
Oless than 10% higher
revised, dar: 10-08-2019
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