Transferring to the TV manufacturer Apple's understanding of touchscreen capabilities and the Apple ecosystem for use in the upcoming Apple Smart TV creates the possible scenario for success of acquisition.
The question has 2 options:- A) Fully integrate the company and combine it with the current computer business because monitors and televisions are similar in their requirements. B) Transfer the knowledge of touchscreen capabilities and the Apple ecosystem from Apple to the TV manufacturer to use for the new Apple Smart TV.
In the first scenario, Apple lacks the technical know-how to manufacture the TV. Here are the distinctions between the two systems with regard to the operating system and port technology. Consequently, it would be difficult to deploy the adapted technology here. The apple would generate a better situation in place of this.
As a result, option b is right.
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mcdonald's uses detailed standard operating procedures throughout the world to ensure product quality. this implies that mcdonald's has a high degree of:
Because it provides excellent customer service and employs effective marketing strategies, McDonald's products and services are in high demand.
What are McDonald's Values:McDonald's had remarkable success as it rose to the top of the fast food sector because of its dedication to providing excellent customer service. It responds to competition provides the greatest customer service and uses efficient marketing strategies, which leads to growth. McDonald's invests heavily in advertising and the franchising model as part of their major business plan, which brings them huge profits and helps them establish their brand name. It provides quick service, a clean atmosphere, and higher-quality items, which aids in client retention.
Fresh and top-quality ingredients are used. During the whole production process, there was stringent temperature and timing control. adherence to microbiological requirements. All employees are well trained, and there is an efficient Critical Control point ( haccp and Critical Control Point (HACCP) plan and Good Manufacturing Practice (GMP) in place.
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a. if sales for the current year were $695,000 and accounts receivable decreased by $43,500 during the year, what was the amount of cash received from customers?
The amount of cash received from customers
Net income = sales - expenses
sales =6,95000
expenses (cost) = 43,500
net income = $695000- $43,500 =$6,51,500.
The revenues and expenses should be recognized during the period they occur. In this case, the sales are for 115,000 regardless of the amount collected during the period or subsequent periods.The expenses for the period are 71,500 Even if a portion remains unpaid at the end of the year, all the expenses for the year should be included in the calculation.Use of net cash of $135,000Why: Cashflow from Investment Activities Section acquisition of equipment (146,000) 127,000 dollars were made when equipment was sold.acquisition of land (16,000).Investing activity's net cash (135,000).Consequently, for the year, net cash flows from investing operations were ($135,000).
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Everything else held constant, when the federal funds rate is ________ the interest rate paid on reserves, the quantity of reserves demanded rises when the federal funds rate ________.
Everything else held constant, when the federal funds rate is above the interest rate paid on reserves, the quantity of reserves demanded rises when the federal funds rate falls.
What is the federal funds rate?The target interest rate established by the FOMC is known as the federal funds rate. This is the overnight lending and borrowing rate between commercial banks for their excess reserves. Short-term interest rates on credit cards and consumer loans can be impacted by the federal funds rate.
What are the reserve interest rates?The interest rate paid by the Federal Reserve on balances kept in master accounts at Federal Reserve Banks by or on behalf of qualifying institutions is known as the interest rate on reserve balances (IORB rate). An essential tool of monetary policy, the interest rate is established by the Board of Governors.
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You have an idea for a company that sources fruits from local farms to make fresh juices that will be sold on a subscription-based service to households within a 100-mile radius. How will you know if your company has a sustainable advantage?.
Determine the value of your potential advantage and whether it has the potential to be profitable or beneficial to your business.
What does the phrase "sustainable advantage" mean?A benefit that enables a business to outperform its competitors over time: Businesses today understand that having excellent human resources is just as important as having excellent products if they want to maintain their competitive advantage.
A well-known example of a company with a persistent competitive advantage is Walmart. Walmart is able to maintain a competitive advantage over its competitors thanks to its organization-specific tactics, which are well known for differentiating Walmart's performance from that of its competitors.
What characteristics constitute a sustainable advantage?A corporation needs to have control over a group of resources that can be exploited and meet four key requirements in order to sustain a competitive advantage. These resources need to be irreplaceable, pricey, uncommon, imperfectly imitable, and non-substitutable.
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rina and musashi are married, under the age of 65, and have three children under the age of 18. musashi works full time and earns $18,000, while rina works part time and earns $9,000. thus, in total, their family income is $27,000. are musashi and rina living in poverty?
Since their income is $27,000 and the poverty line for a family of six is $31670, they do indeed live in poverty. Because her income is below the $27,853 level for a household of five,
Poverty:Poverty is a state of being severely impoverished, to put it simply or in layman's words. The level of revenue from job is so low that it does not cover the necessities of life. Political, economic, and social factors all contribute to poverty.
What does "household income" mean to you?An economic benchmark known as household income can be used to compare the financial well-being of one household with that of the entire county, city, or nation.
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brooklyn files as a head of household for 2022. they claimed the standard deduction of $19,400 for regular tax purposes. their regular taxable income was $80,000. what is brooklyn's amti?
Their regular taxable income was $80,000. The brooklyn's amti is $60600.
Regular taxable income = 80000
Standard deduction = 19400
AMTI = 80000 - 19400 = 60600
The term “income” commonly refers to the amount of money, assets, and other transfers of price obtained over a hard and fast time frame in alternate for products or services. there may be no single, general definition: income is defined consistent with the context in which the concept is used.
Income, at its maximum primary stage, may be categorized as the cash that an individual earns. earnings can come from a variety of assets: wages, dividends, self-employment, etc. profits may be divided into main categories: taxable earnings and non-taxable earnings.
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Global Corporation had 44,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 5% stock dividend when the market value of each share was $29. The entry to record the dividend declaration is:
Debit Secured Earnings is written in the entry. $63,800; debit Dividend Declaration. Dividends on Common Stock in the amount of $44,000 are due; credit $19,800 in rewarded capital over exceed of par value for common stock.
What stock meaning?These certificates of corporate ownership are sometimes known as stocks. The share certificate of a particular corporation is referred to as a share, on the contrary hand. A shareholder is someone who owns stock in a certain company. The two categories of equities are common and preferred stocks.
What is a stock example?Ownership in a publicly traded company is represented by stocks. When you acquire a company's shares, you become a shareholder. A corporation might have 100,000 shares, for example, and if you buy 1,000 of those, you will still own 1% of the company.
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on february 22, stewart corporation acquired 12,000 shares of the 400,000 outstanding shares of edwards co. common stock at $50 plus commission charges of $120. on june 1, a cash dividend of $1.40 per share was received. on november 12, 4,000 shares were sold at $62 less commission charges of $100. using the cost method, journalize the entries for (a) the purchase of stock, (b) the receipt of dividends, and (c) the sale of 4,000 shares. refer to the chart of accounts for exact wording of account titles.
The official record of every company activity is a journal entry. A transaction is, in the broadest sense, any financial activity that has an impact on the firm.
a) Journalize the entry for the purchase of stock as shown below:
Date
Feb. 22
Accounts Titles and Explanation
Investment in shares of E Co. (12,000*$50 +$120)
Debit (S)
$600,120|
To Cash
$600,120
(To record the purchase of 12,000 shares and commission of $120)
b) Journalize the entry for the entry for the receipt of dividends as shown below:
Date
June. 22
Accounts Titles and Explanation
Cash Dr. ($1.40*12,000). $16,800
To Dividend. $16,800
(To record the receipt of dividend)
c) Journalize the entry for the entry for the sale as shown below:
Date
12-Nov
Accounts Titles and Explanation
Cash (4,000*$62 - $100)
$247,900
Profit on sale
$47,860
To Investment in shares of E Co. $200,040
(To record the sale of shares)
Working Note:
Cost of shares sold-
$600,120 12.000 shares -x 4,000 shares
= $200,040.
Profit on sale $247.900-$200,040
= $47,860
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huggins corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. the working capital is:
The working capital for Huggins corp. with current assets of $193,000 and current liabilities of $137,000 will be 56000.
Give a brief account on working capital.Working capital (WC) is a financial metric that measures the operating liquidity that a company, organization, or other body, including a government institution, has available to it. Working capital is included in operational capital together with fixed assets like machinery and equipment. Current assets and gross working capital are equivalent. Current liabilities less Current Assets equals Working Capital. A company has a working capital deficiency (also known as a working capital deficit or negative working capital) if its current assets are fewer than its current liabilities.
Even though a business may be profitable and endowed with assets, it may lack liquidity if its assets cannot be quickly converted into cash. A company must have positive working capital in order to continue operating and have enough money set aside to pay off maturing short-term debt as well as upcoming operational expenses. Inventory, accounts receivable and payable, and cash management are all a part of working capital management.
To solve the question :
Working capital = current assets - current liabilities
= $193,000 - $137,000
= 56000.
Therefore, working capital is 56000.
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when hewlett packard buys electronic components and assembles them into computers, the activities that guide this process are known as .
When Hewlett-Packard purchases electronic components and assembles them into computers, the activities that drive this process are referred to as operations management. Thus, the correct answer is operations management.
What is operations management?Operations management is a branch of management dealing with the design and control of the manufacturing process, as well as the redesign of corporate operations in the creation of goods or services. It is responsible for ensuring that business processes are efficient in terms of utilizing as few resources as possible while yet satisfying consumer expectations. It deals with the whole management of a manufacturing or service system, which is the process of turning inputs (raw materials, labor, consumers, and power) into outcomes.
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_____ is the process of creating and managing a business to achieve desired objectives.
It can be inferred that Entrepreneurship is the process of creating and managing a business to achieve desired objectives.
What is Entrepreneurship?The process of developing or extracting economic value is referred to as entrepreneurship. Entrepreneurs are another term for business owners. According to this definition, entrepreneurship is defined as change, often including risk above what is commonly faced when beginning a firm, and may contain values other than monetary ones.
In the field of economics, the term entrepreneur is used for an entity that has the ability to translate inventions or technologies into products and services. In this sense, entrepreneurship describes the activities of both established businesses and new businesses.
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while you are critiquing an intern’s presentation, you notice that she looks at the ground more often than she looks at you and constantly shifts her weight from foot to foot. what message is the intern expressing nonverbally?
The intern's nonverbal communication indicates that she finds the talk to be uncomfortable.
How can you tell whether the intern is uncomfortable?All of the parts of our bodies play a part in communication in some way. All of our physical components, including our head, eyes, mouth, and feet, are involved in communication.
A person is uncomfortable when they repeatedly shift their weight from one foot to the other while speaking and look down at the ground instead of at the other person. Lowering the brows is a sign of unfavorable emotions like dread or bewilderment.
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steve jobs defined and shaped apple's culture, and his influence continued even after he left the company. this is known as .
The corporate culture of the company is centered on upholding a high degree of innovation that involves employees' imagination and a mindset that questions norms and standards, such as in the field of consumer electronics design.
Who is Apple's intended market?The middle-class and upper-class consumers who can afford to pay more for items that offer them a fantastic user experience make up Apple's target market.
What kind of management philosophy does Apple follow?The following components are integrated into Apple's leadership style: Democratic-style management. The current CEO, Tim Cook, emphasizes democratic leadership in contrast to the more autocratic leadership style of Apple co-founder and late CEO Steve Jobs.
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question content area part 1 the income effect of an increase in the price of salmon part 2 a. refers to the effect on a consumer's purchasing power which causes the consumer to buy less salmon, holding all other factors constant. b. refers to relative price effectsalmon is more expensive compared to other types of fishwhich causes the consumer to buy less salmon. c. is the change in the demand for other types of fish, say trout, that results from a decrease in purchasing power. d. is the change in the demand for salmon when income increases.
The income effect refers to the effect on a consumer's purchasing power which causes the consumer to buy less salmon, holding all other factors constant.
A consumer is a person who purchases, uses, or consumes a product for their own use. Consumers cannot resell goods, products, or services, but they can consume them to earn a living or self-employment. Consumer definition. Consumers are the end users of goods and services.
A consumer is a person who is the end user of an item (goods or services). For example, when you eat, you consume food. You are the final destination of the food, the final consumer, and the consumer of the food.
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one reason organizations create teams is to . a. assert control over employees' actions b. relieve workers of decision-making responsibility c. strengthen the role of managers as supervisors d. limit flexibility e. capitalize on the knowledge and motivation of workers
One reason an organizations create teams is to capitalize on the knowledge and motivation of workers. The Option E is correct.
What is the importance of team in an organization?In a typical organization, a team means group of people who perform an interdependent tasks to work toward accomplishing a common mission or specific objective. Some organization teams have a limited life. For example, if a design team is developing a new product or a continuous process improvement team organized to solve a particular problem.
When a team work together, this is known as teamwork. The term "teamwork" is used across many different industries to increase a performance, employee unity and company culture. The companies that must frequently develop new ideas or products using a project-based approach assemble teams in order to diffuse responsibility and to increase the number and diversity of ideas for the project.
The team members must use a teamwork to bounce ideas off of one another before deciding on a development path for a project.
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which is an example of an appreciating asset? a home. a new car purchased within the past 6 months. a piece of farming equipment. a computer used for business purposes.
The correct answer here is a home. Before we get into why the answer is what it is. Let us understand what appreciation is.
Appreciation is the increase in the value of an asset over time. Appreciation can happen for a number of reasons. It can be due to the increase in demand for that product or the asset or the decrease in supply or a combination of both. It can be also due to unprecedented reasons.
Home appreciation is basically the increase in the value of that house or that building over time, which is what real estate is all about.
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an applicant for accident and health insurance works two jobs. which of the applicant's jobs will be used to underwrite the policy?
A candidate for accident and health insurance holds positions with two distinct companies. The insurance policy will be underwritten using the riskier of the two.
What is meant by the phrase "underwrite risk"?The risk of underwriting is the chance that an insurance policy may be written with unanticipated events or a wrong risk estimate. If the insurer underestimates the risks connected with providing coverage, it can end up having to pay out more than it receives in premiums.
What exactly does an underwritten health insurance plan entail?a technique used by insurance companies to evaluate your health status when you apply for health insurance coverage in order to determine whether to approve your application, how much your coverage will cost, and what exclusions or limits it will have.
What advantages does underwriting in health insurance offer?Underwriting, which involves your insurance provider assessing your eligibility for coverage based on the information you provide and the information it collects to assess the risk of extending you a policy, is a crucial step in the insurance application process.
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when a single firm can supply the entire market at a lower cost than two or more firms, the firm can be said to have which of the following characteristics? it is one of two firms in the industry. it is a natural monopoly. the marginal cost curve rises at an increasing rate. it must be producing at the socially optimal level of output.
When a single firm can supply the entire market at a lower cost than two or more firms, it is a natural monopoly.
What causes a natural monopoly?A natural monopoly is a monopoly in an industry where high infrastructure costs and other entry obstacles in relation to the size of the market provide the largest supplier. It is possible for one firm to serve a given market more affordably than any combination of two or more firms in that market.
A natural monopoly has a high fixed cost for an output-independent good, but its marginal cost of producing one additional good is relatively low and constant. The widespread consensus is that natural monopolies arise for two reasons: economies of scale and economies of scale
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Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives?.
Part of the financial perspective of the balanced scorecard perspectives is examining how the organization appears to shareholders.
The term "financial perspective" means what?The organization's ultimate goals are described from a financial standpoint. By reading indicator data, this perspective enables you to ascertain whether your firm is effective in implementing its strategy.
What does the financial aspect of the balanced scorecard entail?A balanced scorecard is a tool that organizations can use to help with their strategic management. The balanced scorecard is built on four perspectives: financial, business process, customer, and organizational capabilities. It enables businesses to recognize their shortcomings and come up with strategies to address them.
Perspective from a financial standpoint: What Do Our Shareholders Think of Us? Financial performance indicators demonstrate whether a company's strategy, implementation, and execution are enhancing its bottom line. Growth, profitability, and shareholder value are typical financial goals.
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you are a consultant performing an external security review on a large manufacturing firm. you determine that its newest assembly plant, which cost $24 million, could be completely destroyed by a fire but that a fire suppression system could effectively protect the plant. the fire suppression system costs $15 million. an insurance policy that would cover the full replacement cost of the plant costs $1 million per month. what would you recommend?
As a consultant performing an external security review on a large manufacturing firm, the annual rate of occurrence (ARO) in this scenario is 1.
Security is resistance to possible damage brought about by others by restricting their freedom of action. People, social groups, items, organizations, ecosystems, and any other entity or phenomena that is susceptible to unwelcome change can all benefit from security.
The phrase is furthermore used to describe actions and structures whose objective may be to offer security. Security may also be virtual in addition to being physical. In the sixteenth century, the word "secure" made its way into the English language. Its origins are in the Latin word securus, which means anxiety-free.
Hence the correct option is C.
The following question is incorrect, the correct question is-
You are a consultant performing an external security review on a large manufacturing firm. You determine that its newest assembly plant, which cost $24 million, could be completely destroyed by a fire but that fire suppression system could effectively protect the plant. The fire suppression system costs $15 million. An insurance policy that would cover the full replacement cost of the plant cost $1 million per month. What is the annual rate of occurrence (ARO) in this scenario?
A. 12
B. $24 million
C. 1
D. $10 million
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Divisions of the Fed known as _____ handle almost all the checks written against a bank in one city and presented for deposit to a bank in a second city.Multiple Choicebank holding companiesbank examinersFederal Reserve banksFederal Reserve accountscheck clearinghouses
Divisions of the Fed known as check clearinghouses handle almost all the checks written against a bank in one city and presented for deposit to a bank in a second city.
A deposit is a monetary term meaning money held at a bank. A deposit is a transaction concerning a switch of cash to any other birthday celebration for safekeeping. however, a deposit can discuss with a part of the money used as security or collateral for the shipping of a very good. A deposit is an amount of cash kept in a financial institution's account. the two styles of deposits are call-for deposits and time deposits. call for deposit money owed encompass checking debts, savings debts, and cash marketplace money owed.
Time deposit debts include certificate of deposit (CD) money owed and man or woman retirement accounts. The deposit is a legal responsibility owed via the bank to the depositor. Deposit technique means the frequency at which Deposits can be made via a Subscriber over the term of a settlement and is limited to unmarried, annual, semi-annual, quarterly, or month-to-month Deposits.
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straight-line depreciation does not: multiple choice none of the answer choices are correct. let the cost remain the same have a book value use residual to calculate yearly depreciation accelerate depreciation
The straight-line depreciation does not accelerate depreciation. The Option D is correct.
What is a straight-line depreciation?Also called a straight line basis, is a method of calculating depreciation which is the simplest way to work out the loss of value of an asset over time.
A straight line basis for depreciation is calculated by dividing the difference between an asset's cost and its expected salvage value by the number of years it is expected to be used. In conclusion, this method is popular because it is easy to calculate and understand, although it also has several drawbacks.
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when a buyer makes a down payment in the year of sale and then agrees to pay the remainder of the sale proceeds over a period of time, the arrangement is referred to as a(n)
When a buyer makes a down payment in the year of sale and then agrees to pay the remainder of the sale proceeds over a period of time is referred as Trade Credit.
What is Trade Credit?
Trade credit is an arrangement in which a customer can purchase goods without paying cash up front, and paying a supplier at a later scheduled date.
Trade credit can be thought of as a type of 0% financing, increasing a company's assets while deferring payment for a specified value of goods and services to some time in the future and requiring no interest to be paid in relation to the repayment period.
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in accounting for a defined benefit pension plan, any difference between the pension cost charged to expense and the employer’s payments into the pension fund should be reported as: group of answer choices other comprehensive income – gains and losses. accumulated other comprehensive income – prior service cost. an offset to the liability for prior service cost. pension asset/liability.
In accounting for a defined benefit pension plan, any difference between the pension cost charged to expense and the employer’s payments into the pension fund should be reported as: Accrued or prepaid pension cost.
A pension is a fund into which a sum of money is delivered at some point of an worker's employment years and from which bills are interested in help the person's retirement from paintings in the form of periodic bills.
A pension is a kind of retirement plan that provides month-to-month profits when you retire out of your position. The corporation is required to make contributions to a pool of price range invested on the worker's advantage. As an employee, you could contribute part of your wages to the plan, too. not all businesses provide those plans.
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better products company recently issued its employees identification tags that contain a chip that records how long individual workers spend at their workstations and how many times they visit the restroom. which function might this technology serve
Based on the business technology and the situation described here, the function this technology might serve is "Reducing company time wasted by employees."
What is Business TechnologyBusiness technology is a term that is used to describe the trans-disciplinary process and activities in business firms or workplaces, which helps to optimize production by lowering cost and time while increasing output.
In this case, given that the identification tags that contain a chip that records how long individual workers spend at their workstations and how many times they visit the restroom will be given to employees, this is expected to reduce the time wasted by employees.
Other types of business technology examples are:Computer systemsProductivity toolsNetworking devices and printersMail and phone systemsFinancial accounting systemsInventory control systemsCustomer relationship management systemsDiversified marketing optionsHence, in this case, it is concluded that Business technology is a good system or device to have in any business firm or workplace.
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rosslare has budgeted the following sales: jan: 8,200 units feb: 6,300 units mar: 4,700 units apr: 3,600 units may: 2,600 units the company requires that ending inventory for each month is equal to 20% of the next month's sales. beginning inventory in january is 1,640 units. how many units should the company produce in february?
The company should produce 25020 amount.
What makes it a company, and why?
A company is what is used to describe a business since its personnel want to add value. The word "produce," which meaning to lead forth or bring forth, has a Latin origin. The word "company" first originated in Old French, which is a synonym for "compaignie" or "companionship.". Furthermore, the word "business" has its roots in Old English, which combines busy with -ness.
Briefing:
The number of units that should be produced in January, 2013 in order for the company to meet its goals will be:
= Budgeted sales + Ending inventory - Beginning inventory
= 25400 + (6300 × 20%) - 1640
= 25400 + 1260 - 1640
= 25020
Therefore, 25020 units should be produced.
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why can it be dangerous to provide credit card information over the internet? does it stop the risk if you only use credit cards at local businesses?
If there were no rules or information security standards governing the data that makes up an e-commerce transaction, the Internet would not be as popular as it is now.
It is well recognized that using cyber security is important for e-commerce. Because cyber assaults may result in significant loss of income, data, and company viability, cyber security is crucial for e-commerce. Be aware that an increase in online crime may cause a crash. Therefore, I would say that, in the absence of regulations or information security standards pertaining to the data that makes up an e-commerce transaction, the Internet would not be as popular as it is now.
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in the long-run which of the following is true? a. total cost equals fixed cost plus variable cost. b. the size of a firm's physical plant can be changed but the firm cannot adopt new technology. c. there are no fixed costs. d. the firm can vary its explicit costs but not its implicit costs.
Since there are no fixed costs in the long run, choice (c) is the correct one.
What is implicit cost?You make the decision to forgo receiving a salary during the first two years in order to assist cover starting costs. Any expense that has already happened but isn't always shown or reported as a separate charge is considered an implicit cost. It stands for an opportunity cost that develops when a business commits internal resources to a project without receiving any direct payment in exchange. In the field of economics, an implicit cost, also known as an imputed cost, implied cost, or notional cost, is the opportunity cost corresponding to what a company must forgo in order to employ a factor of production that it already owns and is therefore not subject to rental fees. In contrast, an explicit expense is one that is paid for up front.
Which is not an implicit cost?Employee salaries serve as a direct variable cost that is dependent on the level of production; as such, they are an accounting expense rather than an implicit one.
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kent clark is an optometrist and has four assistants working for him. dr. clark is considering purchasing a new piece of equipment that will allow him to more accurately measure the vision needs of his patients. what decision-making strategy should he use?
Kent Clark should use Autocratic 1 decision-making strategy.
Since Kent Clerk has enough information with him, it's better to for him to take decision alone.
What is decision-making strategy?
In psychology, decision-making—also written decision-making—is defined as the cognitive process that leads to the choice of a belief or a plan of action from among a number of potential alternative possibilities. It could be both unreasonable and rational. The process of creating decisions is a form of reasoning that is predicated on the decision-values, maker's preferences, and beliefs. A decision is made at the end of every decision-making process, and that decision may or may not lead to action.
Particularly in European psychology research, research on decision-making is also published under the heading of issue solving.
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kent clark is an optometrist and has four assistants working for him. dr. clark is considering purchasing a new piece of equipment that will allow him to more accurately measure the vision needs of his patients. what decision-making strategy should he use?
suppose that the gdp of oregon today is exactly twice what it was 22 years ago. what was the average annual growth for oregon over this time period?
Suppose that the gdp of Oregon today is twice that of 22 years ago. The average annual growth of the gdp is 3.2%
The problem can be solved using growth model:
P = Po (1 + r)ⁿ
Where:
P = quantity after n periods
n = number of periods
r = growth rate
Po = initial quantity
In this problem, the quantity if the gdp.
n = 22 years
P = 2Po
Hence,
2Po = Po (1 + r)²²
(1 + r)²² = 2
1 + r = 2^(1/22) = 1.032
r = 1.032 - 1 = 0.032 = 3.2%
Hence, the average annual growth of the gdp is 3.2%
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