Respuesta :
Answer:
A.$ 167,088.75
B.$66,760.79
C.With higher growth rate labor productivity will be 2.50 times the labor productivity with lower growth rate.
Explanation:
a) Labor Productivity in 2015 = $100,000
Growth rate = 2.6 %pa = 0.037
Therefore labor productivity per worker in 2035 will be 100000(1 + 0.026)20
= $ 167,088.75= $167,100( rounded to nearest $100)
b) Labor Productivity in 2015 = $100,000
Growth rate falls by 2.0% per annum
Growth rate = -2.0%pa = -0.02
Therefore labor productivity per worker in 2035 will be 100,000(1-0.02)20
= $66,760.79 = $ 66,800 ( rounded to nearest $100)
C.With higher growth rate, labor productivity in 2035 is $ 167,088.75 and with lower growth rate labor productivity in 2035 will be $66,760.79
So, we can say that, in 2035, with higher growth rate labor productivity will be ($167,088.75/$66,760.79)= 2.50 times the labor productivity with lower growth rate.
The labor productivity in 2035 if productivity grows by 2.6% per year is $167,088.75.
The labor productivity in 2035 if productivity falls by 2 per year is $66,760.80.
What is the labor productivity?
The formula that can be used to determine labor productivity in 2035 if productivity grows by 2.6% per year is:
FV = P (1 + r)^n
- FV = Future value
- P = Present value
- R = rate of growth = 2.6%
- N = number of years = 20
$100,000 x (1.026)^20 = $167,088.75
The formula that can be used to determine labor productivity in 2035 if productivity falls by 2% per year is:
FV = P (1 - r)^n
FV = Future value P = Present value R = rate of decline = 2%N = number of years = 20$100,000 ( 0.98)^20 = $66,760.80
To learn more about future value, please check: https://brainly.com/question/18760477
