Neco Model Questions Vol1 2017 Economics Question 24

Practice objective / multiple choice question 24 from the 2017 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2017 Economics Objective / Multiple Choice Hard Difficulty
Question 24 NECO_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

A country's manufacturing sector starts the year 2020 with a capital stock of \(\text{₦}1{,}000\) billion. Each year the sector depreciates \(5\%\) of its capital stock. The sector saves (invests) \(50\%\) of its output. Output is produced according to the linear function \(Y = 0.4K\), where \(K\) is the capital stock at the beginning of the year. How many whole years are required for annual output to reach at least \(\text{₦}2{,}000\) billion?

Answer Options

A. 10
Correct Answer B. 12
C. 13
D. 15
Correct Answer
B
Correct Option:
12

About This Question

This is Neco Model Questions Vol1 2017 Economics Question 24. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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