Suppose you invest $10,000 at 7% interest to be withdrawn by your heirs in 100 years. According to the rule of 70, approximately how much will your heirs be able to withdraw?
With a 7% interest rate the rule of 70 implies the investment will double every 10 years. The investment will therefore double 10 times over 100 years. At the end of 100 years the investment will be worth approximately 210 x $10,000 = $10,240,000.
Economics
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After identifying one combination of interest rates and GDP for which the demand for money is equal to the supply of money (equilibrium), to maintain the equilibrium if GDP rises:
A) this would not affect interest rates. B) interest rates would have to fall. C) interest rates would have to rise. D) interest rates would not be in parity with foreign rates of interest.
Economics
How much is this firm's output?
Economics