How much will person make if account earns compound interest


Discussion Post

• Spain can produce 125 barrels of wine or 250 bottles of olive oil per day. Italy can produce 240 barrels of wine or 300 bottles of olive oil per day.

o Who has the absolute advantage in producing wine? Who has the absolute advantage in producing olive oil?

o What is Spain's opportunity cost of producing one barrel of wine? What is Spain's opportunity cost of producing one bottle of olive oil?

o What is Italy's opportunity cost of producing one barrel of wine? What is Italy's opportunity cost of producing one bottle of olive oil?

o Who has the comparative advantage in producing wine? Who has the comparative advantage in producing olive oil?

• A person invest $10,000 into an account that earns 6% in interest over 20 years.

• How much will this person make if the account earns simple interest?

• How much will this person make if the account earns compound interest?

• Do you think super PACs benefit society or make things worse? Explain.

The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.

Solution Preview :

Prepared by a verified Expert
Microeconomics: How much will person make if account earns compound interest
Reference No:- TGS03119754

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)