b. a lower price for autos in the United States than in Europe.
c. the same price for autos in the United States as in Europe.
d. a higher price for autos in the United States than in Europe.
Answer:
d. a higher price for autos in the United States than in Europe.
Explanation:
As it is mentioned that the price elasticity of demand in more in Europe as compared with the United States that represents a slight increase in price would decline the immense demand in Europe
Plus the elasticity in the united states is not high that reflects that change in price have a less impact on quantity demanded
Therefore the option d is correct
b. Calculate the accumulated value of her investment at the end of 11 years.
c. Calculate the amount of interest earned from the investment.
At the end of the first six years, the investment has a total value of $33,358.31. After 11 years, the investment has grown to a total value of $97,719.38. $60,319.38 has been earned in interest.
The following equation can be used to determine interest rates: Interest equals P x R x N. P is the principle amount (sometimes known as the starting balance), and R is the interest rate (usually per year, expressed as a decimal). N represents the quantity of time periods (generally one-year time periods).
FV = $1,700 * ((1 + 0.0740/2)⁽²ˣ²²⁾ - 1) / (0.0740/2) = $33,358.31
FV = $1,700 * ((1 + 0.1180/2)⁽²ˣ²²⁾ - 1) / (0.1180/2) = $97,719.38
$1,700 * 2 * 11 = $37,400
As a result, the interest earned is as follows:
$97,719.38 - $37,400 = $60,319.38.
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