Question

= KW/ P where KW is Korean Won and P is Japanese Yen

Assume there is no inflation in South Korea and in Japan.
a. Consider South Korea is Home and Japan

Answer 1

In 20 years, the income of South Korea will be $21,911.60 and the income of the United States will be $12,196.22, growing by approximately 2.191 and 1.22 times, respectively.

Step-by-step explanation:

In this question, we are given that South Korea grows at a rate of 4% and the United States grows at a rate of 1%. Assuming they both start from an income level of $10,000, we can calculate their incomes in 20 years.

To calculate the income in 20 years, we can use the formula:

Final Income = Initial Income imes (1 + Growth Rate)^Number of years

By plugging in the values, the income of South Korea will be $21,911.60 and the income of the United States will be $12,196.22 in 20 years.

To find the multiples by which each country's income grows, we can divide the final income by the initial income. So, the income of South Korea will grow by approximately 2.191 times, while the income of the United States will grow by approximately 1.22 times.