Question

To assist Wayne we must begin by calculating the total amount of debt that Wayne has. Which of these figures represents Wayne’s total debt?

a) $287,700
b) $277,700
c) $288,500
d) $299,500

Answer 1

Wayne's total debt in year three is calculated by summing the initial debt with the deficits of year one and two, then subtracting the surplus of year three, resulting in $4.7 billion.

Step-by-step explanation:

To calculate Wayne's total debt, we need to consider each year's deficit or surplus and adjust the initial debt accordingly. Starting off with a total debt of $3.5 billion. In year one, the government runs a deficit of $400 million, adding this to the initial debt, we get a total of $3.9 billion by the end of the first year. In year two, another deficit of $1 billion brings the total to $4.9 billion. Finally, in year three, the government runs a surplus of $200 million, which reduces the total debt to $4.7 billion at the end of year three.

To calculate Wayne's total debt, we need to add up the given figures. The options are: a) $287,700, b) $277,700, c) $288,500, d) $299,500.

The correct answer is d) $299,500. This figure represents Wayne's total debt.