The government received a loan of 7 million monetary units at 10% per year (expenditure). These funds will be used to finance the project, which will annually bring a GDP increase of 1.4 million monetary units (revenue). How many years will it take the country to pay the debt? Take in consideration, that in system of national accounts expenditure and revenue must be equal. Find solution using the equation where x – quantity of years.

The government received a loan of 7 million monetary units at 10% per year (expenditure). These funds will be used to finance the project, which will annually bring a GDP increase of 1.4 million monetary units (revenue). How many years will it take the country to pay the debt? Take in consideration, that in system of national accounts expenditure and revenue must be equal. Find solution using the equation where x – quantity of years.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter21: International Cash Management

Section: Chapter Questions

Problem 3BIC

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