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Baumol model followup

Hhuma8y ago
So sir are the below 2 formulae correct and can it be applied in all Baumol model questions? 1) Interest lost on investment which we calculated by Interest rate on investment (%) multiply by (Investment sold at start of year + cumulative investment sold at end of year) / 2 2) Interest earned on bank balance which is calculated by (interest earned on bank balance (%) multiply by investment sold each time) /2
John MoffatJohn MoffatTutor8y ago#1
Correct
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