Question
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:
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