Select best answer In two years the XYZ Co. will start an expansion program. He

Question

Select best answer

In two years the XYZ Co. will start an expansion program. He has decided to invest $ 3,000,000 now, so that in two years the total value of the investment is $ 3, 245,000, which is the amount required for the expansion. The annual interest rate, compounded annually, that the company must receive to achieve its objective is __________.

a.2.5 %

b.3.0%

c.4.0%

d.2.0%

The price of a product is p dollars per unit. Suppose a manufacturer will supply 2p-10 units of the product to the market, and that consumers will demand 200-3p units. The equilibrium price p is __________.

a.35

b.42

c.47

d.39

In the previous exercise, (8) the equilibrium amount is ___________.

a.55

b.67

c.70

d.74

Explanation / Answer

Here p =3000000 (investment amount) A =3245000 (total value of investment) n = time =2 years r = rate of interest    compount interest formula    A =p(1+r/100)n    3245000 =3000000(1+r/100)2 =3245000/3000000 =(1+r/100)2 so 1.0817 =(1+r/100)2 therefore 1+r/100 =1.04 ( doing square root) r/100 =1.04 -1 and r =0.04*100 so r =4 rate of interest ==4% so option c is right

price of a product is p dollars per unit , Quantity of supply =2p -10 units Quantity demanded =200 -3p

As we know Quantity supply =Quantity demand

2p -10 =200 -3p

2p+3p =200+10    , 5p =210

p =210/5 ( dividing by 5 both side) p =42    Equilibrium price p is 42 so option B is right

And answer for the last question is not possible as question is not properly given

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