Suppose at the beginning of year 0 that this country has 80 units of capital. Investment expenditures are 10 units in each of years 0, 1, 2, 3, 4, . . . , 10. The capital stock depreciates by 10% per year.

(a) Calculate the quantity of capital at the beginning of years 0, 1, 2, 3, 4, . . . , 10.

(b) Repeat part (a), except assume now that the country begins year 0 with 100 units of capital. Explain what happens now, and discuss your results in parts

(a) and (b).