question 27\ntheresa invested $5,000 in an account she expects will earn 11% annually. approximately how…

question 27\ntheresa invested $5,000 in an account she expects will earn 11% annually. approximately how many years will it take for the account to double in value? (report an integer)\n(hint: the easiest way to solve this problem is to use the \rule of 72\.)\n(note: approximately, 1.3 is 1, not 2; and 1.5 is approximately 2.)\n\nquestion 28\n5 pts\nbecky graduated with a master degree in personal financial planning. after working two years in a small financial planning firm, becky earns $72,946 annually and saves $14,194 a year. what is her average propensity to consume? (keep 2 decimal places)

question 27\ntheresa invested $5,000 in an account she expects will earn 11% annually. approximately how many years will it take for the account to double in value? (report an integer)\n(hint: the easiest way to solve this problem is to use the \rule of 72\.)\n(note: approximately, 1.3 is 1, not 2; and 1.5 is approximately 2.)\n\nquestion 28\n5 pts\nbecky graduated with a master degree in personal financial planning. after working two years in a small financial planning firm, becky earns $72,946 annually and saves $14,194 a year. what is her average propensity to consume? (keep 2 decimal places)

Answer

Question 27

Explanation:

Step1: Apply rule of 72

The rule of 72 formula is $n=\frac{72}{r}$, where $n$ is the number of years for an investment to double and $r$ is the annual interest rate.

Step2: Substitute the interest - rate value

Given $r = 11$, then $n=\frac{72}{11}\approx6.55$.

Step3: Round to an integer

Since we need to report an integer and according to the note (1.5 is approximately 2), we round 6.55 to 7.

Answer:

7

Question 28

Explanation:

Step1: Calculate consumption amount

Consumption $C=$ Income $Y-$ Savings $S$. Given $Y = 72946$ and $S=14194$, then $C=72946 - 14194=58752$.

Step2: Calculate average propensity to consume

The formula for average propensity to consume (APC) is $APC=\frac{C}{Y}$. Substitute $C = 58752$ and $Y = 72946$ into the formula: $APC=\frac{58752}{72946}\approx0.8054\approx0.81$.

Answer:

0.81