Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show your work! Assume the information below to answer the following questions about the land of POGO. Assume a 6% interest rate on all

Please show your work!

Assume the information below to answer the following questions about the land of POGO. Assume a 6% interest rate on all interest-bearing Pogo assets (assets issued by Pogo), and a 5% interest rate on Foreign assets (issued by Foreign). All figures below are listed in 'Pogo' dollars. B = Billion. RECORD YOUR ANSWERS ON BLACKBOARD WITHOUT THE DOLLAR SIGN OR B.

POGO CONSUMER EXPENDITURES, 2020: $140B

POGO INVESTMENT EXPENDITURES, 2020: $5B

POGO GOVERNMENT EXPENDITURES, 2020: $25B

EXPORTS OF MERCHANDISE GOODS & SERVICES TO FOREIGN, 2020: $5B

IMPORTS OF MERCHANDISE GOODS & SERVICES TO FOREIGN, 2020: $18B

POGO LABOR INCOME FROM ABROAD, 2020: $2B

INCOME PAID TO FOREIGN WORKING IN POGO, 2020: $18B

FOREIGN ASSETS OWNED BY POGO, START of 2020: $120B

POGO ASSETS OWNED BY FOREIGN AT THE START of 2020: $150B

1. Pogo's international net worth at the start of 2020 is __

2.Based on the information from question 1, Pogo's international net worth at the start of 2021 is:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Math For Business And Finance An Algebraic Approach

Authors: Jeffrey Slater, Sharon Wittry

1st Edition

0077639626, 9780077639624

More Books

Students also viewed these Economics questions