Maths For Finance Questions Thanks!

2008-06-27 7:57 am

4. A firm expects its sales to grow by 12% per month. If its January sales figure is 9,200 per month what will its expected total annual sales be?

5. A developing country currently produces 3,600 million units of food per annum and this rate of production is expected to increase by 4% a year. Its population is currently 2.5 million and expected to grow by 6% per annum. The minimum recommended average intake of food is 1,200 units of food per person per year. Assuming no changes in production or population growth rates, no imports and exports and no foreign aid, when will food production fall below
the subsistence level?

回答 (1)

用戶22404

2008-06-27 8:15 pm

✔ 最佳答案

4. As the sales grows 12% per month, the present sales would be equal to previous sales multiplied by (1+12%) and etc....., it follows a geometic progressiom. Total annual sales equal 9200[(1.12^13 -1)]/(1.12-1) = $257,867.81.
5. Assume the country takes n year to fall below 1200 unit per person level, The formula : 3600 mil * (1+4%)^n / 2.5 mil * (1+6%)^n < 1200 , 1,440 * (1.04/1.06)^n<1200, n=10. Therefore, the country will take 10 years to fall below minimum recommended average intake of food of 1200 unit of food per person per year.

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