QUESTION 2 Trade creates value by a. moving goods from people who value the goods less to people who value the goods more. b. permitting trading partners to expand output through specialization in areas where they each have a comparative advantage. c. permitting trading partners to expand output through the adoption of mass production methods. d. all of the above.

A farm purchased in 2000 for \( \$ 1 \) million was valued at \( \$ 3 \) million in 2008. If the farm continues to appreciate at the same rate (with continuous compounding), when will it be worth \( \$ 14 \) million? Find a function \( \mathrm{A}(\mathrm{t}) \) that gives the current value of the farm. \( \mathrm{A}(\mathrm{t})=\square \) (Type an exact answer.)

2 Jane sells jewellery. Her weekly commission is based on a sliding scale of on the first \( \$ 2500 \) of her sales, \( 5 \% \) on the next \( \$ 5000 \) and \( 1 \% \) thereafter. She also gets a weekly retainer of \( \$ 500 \) Jane's weekly commission

What is the approximate balance after 20 years? Choose the correct answer below. \( \begin{array}{ll}\text { A. } \$ 200 & \text { B. } \$ 400 \\ \text { C. } \$ 100 & \text { D. } \$ 10 \\ \text { b) About how fast is the balance increasing after } 20 \text { years? } \\ \text { Choose the correct answer below. } \\ \begin{array}{ll}\text { A. } \$ 5 / y e a r & \text { B. } \$ 200 / y e a r \\ \text { C. } \$ 20 / y e a r & \\ \text { c) Use the answers to parts a) and b) to determine the interest rate. }\end{array} \\ \text { The interest rate is } \square \% .\end{array} \)

How much money must you invest now at \( 4.2 \% \) interest compounded continuously in order to have \( \$ 10,000 \) at the end of 4 years? You must invest \( \$ \square \). (Round to the nearest cent as needed.)

Find the present value of \( \$ 7,000 \) to be received in 5 years, if money may be invested at \( 7.2 \% \) with interest compounded continuously. The present value is \( \$ \square \). (Round to the nearest cent as needed.)