Question

In: Finance

In April 2016 a pound of apples cost $1.54, while oranges cost $1.18. Three years earlier...

In April 2016 a pound of apples cost $1.54, while oranges cost $1.18. Three years earlier the price of apples was only $1.33 a pound and that of oranges was $1.04 a pound. a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Compound annual growth rate___________% per year

b. What was the annual compound rate of growth in the price of oranges? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Compound annual growth rate___________% per year

c. If the same rates of growth persist in the future, what will be the price of apples in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price____________

d. What about the price of oranges? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price __________

Solutions

Expert Solution


Related Solutions

In April 2016 a pound of apples cost $1.51, while oranges cost $1.15. Three years earlier...
In April 2016 a pound of apples cost $1.51, while oranges cost $1.15. Three years earlier the price of apples was only $1.30 a pound and that of oranges was $1.01 a pound. a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What was the annual compound rate of growth in the price of oranges? (Do not round...
In October 2017 a pound of apples cost $1.61, while oranges cost $1.25. Two years earlier...
In October 2017 a pound of apples cost $1.61, while oranges cost $1.25. Two years earlier the price of apples was only $1.40 a pound and that of oranges was $1.11 a pound. Compound annual growth rate of apples Compound annual growth rate of oranges Price of apples Price of oranges
n October 2017 a pound of apples cost $1.43, while oranges cost $1.07. Two years earlier...
n October 2017 a pound of apples cost $1.43, while oranges cost $1.07. Two years earlier the price of apples was only $1.22 a pound and that of oranges was $0.93 a pound. What was the annual compound rate of growth in the price of apples? What was the annual compound rate of growth in the price of oranges? If the same rates of growth persist in the future, what will be the price of apples in 2030? If the...
Oranges cost $1/kg and apples also cost $1/kg. Niki has $12 to spend on apples or...
Oranges cost $1/kg and apples also cost $1/kg. Niki has $12 to spend on apples or oranges. He chooses to buy 5 kg of apples. Draw (on a diagram measuring quantity of oranges on the horizontal axis) Niki’s budget line and show the optimal consumption point. Do not forget to draw the relevant indifference curve(s). The government subsidizes consumption of apples so that apples now cost $0.5/kg). How does Niki’s budget line change? Show graphically (on the same diagram you...
Consider an economy that produces only three types of fruit: apples, oranges & bananas. In the...
Consider an economy that produces only three types of fruit: apples, oranges & bananas. In the base year the production & price data are as follows: Fruit      Quantity    Price Apples 3000 Unit Rs. 2 per unit Bananas 6000 Unit Rs. 3 per unit Oranges 8000 Unit Rs. 4 per unit In the current year the production & price data are as follows: Fruit     Quantity    Price Apples 4000 Unit Rs. 3 per unit Bananas 14,000      Unit...
Aji Fatou can produce either apples or oranges on her farm and the explicit cost of...
Aji Fatou can produce either apples or oranges on her farm and the explicit cost of production is the same for both. At the moment she’s growing apples. Her accountant tells her that she is making money. Aji Fatou’s friend, who is an economist, also tells her that she is making profits. This must mean that the revenue from growing apples is greater than a.The explicit cost of growing apples b.The revenues from growing oranges c.The opportunity cost of growing...
Aji Fatou can produce either apples or oranges on her farm and the explicit cost of...
Aji Fatou can produce either apples or oranges on her farm and the explicit cost of production is the same for both. At the moment she’s growing apples. Her accountant tells her that she is making money. Aji Fatou’s friend, who is an economist, also tells her that she is making profits. This must mean that the revenue from growing apples is greater than a.The explicit cost of growing apples b.The revenues from growing oranges c.The opportunity cost of growing...
In January of 2016, the average price of an asset was $28,558. 7 years earlier, the...
In January of 2016, the average price of an asset was $28,558. 7 years earlier, the average price was $20,808. What was the annual increase in the selling price? Multiple Choice -4.42% 4.63% 4.16% 5.55% 5.09%
A one-pound bag of Oreos cost $0.32 in 1922 and $2.99 in 2016. Which one-pound bag...
A one-pound bag of Oreos cost $0.32 in 1922 and $2.99 in 2016. Which one-pound bag of Oreos is cheaper in real terms? Explain how you would go about determining your response and show your work.
policy date of purch. months cost A April 1, 2015 24 $15,840 B April 1, 2016...
policy date of purch. months cost A April 1, 2015 24 $15,840 B April 1, 2016 36 $14,616 C August 1, 2017 12 $13,440 Use the information to prepare adjusting entries as of December 31, 2017 Record the adjusting entry related to the company's insurance. I don't know how to find the months to times by total months
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT