World Bank data on a developing country shows per capita incomes of $4,500 for urban residents and $3,200 for rural residents. Migration from rural to urban areas has slowed the growth of urban incomes to a 3.0% average annual rate while rural per capita incomes grew 4.5% annually.  If the historic growth rates continue into the future, how many years will it take for incomes to equalize?   Number of Years:

Q: rican country

A: Given the investment principal at zero time = 100000, it will grow @28% per annum, but the amount…

Q: Revenue from a project is expected to be $7000 per year in real terms (i.e. an identical project…

A: Real Value (P) = $7,000Inflation rate (r) = 2.4% or 0.024Number of years (n) = 8

Q: Use the formula for the effective rate (annual effective yield) reff = (A/P)1/t − 1 where P is an…

A: Effective rate = (A / P)1/t - 1 P = initial investment = $50,000 t = Time = 6  years A = accumulated…

Q: A young man has decided to go into business at the age 40. He wishes to accumulate P200,000.00 at…

A: The given problem relates to growing annuity. A growing  annuity is a series of  cash flows…

Q: If velocity is constant at 10 and the money supply decreases from $1,800 billion to $1,400 billion,…

A: Velocity = 10 Initial money supply (M0) = $1800 billion New money supply (M1) = $1400 billion Let…

Q: In the table below you have information concerning a project, (t) represents the year, () is the…

A: Net Present value (NPV) is the method used to determine current value of all future cash flows…

Q: population of a country was approximater million. Use the exponential growth model A = Aet, in which…

A: The growth in the population do not follow any patterns but for simplicity it is assumed that growth…

Q: Whadden National Bark is undertaking statec GAP analysis. In the one yoar time bucket, it holds $43…

A: Strategic gap analysis is a business management technique that requires an evaluation of the…

Q: Below you can find the memoranda for the country called LALALA. All values are in millions of US…

A: Balance of payment calculated by considering the international transaction payment and receipt of a…

Q: Documents from a 13th century English estate reveal that the value of its flock of sheep was £56.…

A: Here, Value of Flock of Sheep is £56 Profit is £23 Same Profits will continue forever

Q: Inflation erodes the value of money. Assuming an annual inflation rate of 9​%, what would a 2011…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: Based on the following information, what is the expected return? State of Economy Recession Normal…

A:

Q: If the Canadian dollar appreciate by 5% relative to the British pound, what will be the percentage…

A: The exchange rate is the value of a country's currency in relation to the currency of another…

Q: Consider a policy that generates benefits and costs this year (i.e., Year 0) and. next year (Year…

A: Net benefita of 1st year are $100 if the net benefits of 2nd year wil be more than$ (123), then the…

Q: dollar. What is the NPV of this investment? Is it a good opportunity? What is the NPV of this…

A: The forward exchange rate is equal to the difference in interest rates between two countries…

Q: An investment in China yields these expected after-tax renminbi cash flows (in billions). year CF 0…

A: The NPV of an investment refers to the value of the future cash flows together after they have been…

Q: Question 2. payments. If the interested rate is 10% compounded monthly, find the monthly payment re-…

A: Monthly payment is refer as the regualr amount of fund or payments at monthly time interval. It is…

Q: The time value of money is a financial concept that focuses on the idea that a dollar today will be…

A: Step 1:Future value (FV) = PV×(1+i)^t where:PV = Present value or the amount deposited today…

Q: Suppose you have $100,000 cash today and you can invest it to become a millionaire in 15 years. What…

A: The future value refers to the estimated value of an asset or investment at a specific point in the…

Q: estate prices in a city have been increasing at an exponential rate of 2.7% per year. If the value…

A: Answer : Todays expected to be OMR = 168,789.92 Exponential rate = 2.7%

Q: Suppose you need to pay V = 75,000 GBP in a year from now. Spot rate of GBP is 1 You do not have…

A: Hedging is the way to take opposite position in the forward or future market to avoid loss in the…

Q: An investment in China yields these expected after-tax renminbi cash flows (in bilions). CF -509 148…

A: Answer -  Formula for Calculation of forward rate is as under : (1+Home Inflation Rate)/ (1+ Foreign…

Q: Refer to the attached diagram to answer the following question: Will the level of saving and…

A: In four sector economy, income is determined by the following formula: Y = C + I + G + (X-M)  where,…

Q: Jarviland is a small country with only two sectors: microchips and computers. This year, the toal…

A: Gross Domestic Product : the market value of the final production of goods and services within the…

Q: If you invest $15,000 every year and expect to increase your investment by 6% each year for the next…

A: This is a growing annuity and we have to find the present value of a growing annuity.

Q: \ For the past years, real estate prices in a city have been increasing at an exponential rate of…

A: Exponential rate Exponential growth is a data pattern that exhibits sharper increases over time.…

Q: 23. Grim Smith plans to invest ¥12 million, three years from now. The rate of return has been…

A: The worth of a present asset at some point in the future based on an anticipated growth rate is…

Q: Need solutuon

A:

Q: 6. Pharmaceuticals. Below are the incremental cash flows for the Canopy project for you to use in…

A: Here, Growth rate after 2003 is 5% Cost of Capital is 15.7% Marginal tax rate is 35%

Q: Purchasing Power The purchasing power (real valueof money) decreases if inflation is present in the…

A:

Q: For the past years, real estate prices in a city have been increasing at an exponential rate of 2.7%…

A: Purchase price after 3 years (X) = OMR168,789.92 Interest rate (r) = 0.027 e = Mathematical constant…

Q: the populatio: % per year. opulation in How many

A: Basic Concept of Time Value of Accounting shall used to calculate future value with help of provided…

Q: Solve the problem

A: (180/90) * 20 % = 40 % Solving this in details;To determine the government's interest payments on…

Q: Waleed wants to get a 5.5% of return to his investment in 1 year. In Oman, inflation is 6.74%. What…

A: Required Return on investment = 5.5% Inflation rate = 6.74% Waleed wants to get a return of 5.5% but…

Q: If the required reserve ratio is 15%, currency in circulation is $400 Billion, checkable deposists…

A: The money multiplier refers to the changes which can be affected the value of money deposits up to…

Q: Suppose Canada in 2018 has GDP per capita that is 80% of that in the U.S. Assume that GDP per capita…

A: In this question, we are required to determine the number of years it will take for the GDP Per…

Q: None

A: a. How much will this increase GDP?Step 1: Identify the Marginal Propensity to Consume (MPC), which…

Q: 470 - 34 you have concluded that the following relationships are possible next year: economic…

A: Probability Rate of return 0.15 -5% 0.60 5% 0.25 15%

Q: rcent of the world’s household wealth; the richest 2 percent of adults have more than half of the…

A:

Q: Scenarios: You work in the macroeconomic research department of an investment bank. Based on your…

A: An option is a type of financial instrument that is based on the value of underlying securities,…

Q: EMA's 2022 sales were $10 million. If sales grow at 5% per year, how large will they be 5 years…

A: Future value is the estimation of future cash value which is likely to be received in the future…

Balance of Payments

BOP is categorized into the following three components: