Suppose that average incomes today were $56,769 and are expected to grow at 3% each year for the next 81 years. The president is considering a policy which would increase the growth rate to 5%. How much higher would the average income be in 81 years if this policy is enacted? Round your final answer to two decimal places.
Suppose that average incomes today were $56,769 and are expected to grow at 3% each year for the next 81 years. The president is considering a policy which would increase the growth rate to 5%. How much higher would the average income be in 81 years if this policy is enacted? Round your final answer to two decimal places.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![Suppose that average incomes today were $56,769 and are expected to grow at 3% each year for
the next 81 years. The president is considering a policy which would increase the growth rate to
5%.
How much higher would the average income be in 81 years if this policy is enacted?
Round your final answer to two decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6387f1fe-f7de-460c-a439-51c8967659dd%2F7201a42c-6dda-4aaa-93d0-3af0d14c72d9%2F84upacj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that average incomes today were $56,769 and are expected to grow at 3% each year for
the next 81 years. The president is considering a policy which would increase the growth rate to
5%.
How much higher would the average income be in 81 years if this policy is enacted?
Round your final answer to two decimal places.
![Ami has decided to be cryogenically frozen at the time of her death so that she can be resurrected
once medical science has advanced far enough to keep her alive. In preparation, Ami places
$56,118 into an investment account which earns an 7.0% rate of return per year. To her
amazement, she is one day brought back to life. "How long has it been?" she asks. "262 years" the
strangely dressed person replies.
How much money is sitting in Ami's investment account?
You are welcome to round to the nearest whole number. You need to be within $1 million of the correct
answer.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6387f1fe-f7de-460c-a439-51c8967659dd%2F7201a42c-6dda-4aaa-93d0-3af0d14c72d9%2Fgeioaku_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ami has decided to be cryogenically frozen at the time of her death so that she can be resurrected
once medical science has advanced far enough to keep her alive. In preparation, Ami places
$56,118 into an investment account which earns an 7.0% rate of return per year. To her
amazement, she is one day brought back to life. "How long has it been?" she asks. "262 years" the
strangely dressed person replies.
How much money is sitting in Ami's investment account?
You are welcome to round to the nearest whole number. You need to be within $1 million of the correct
answer.
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