In order to solve the above question we will need to frame 2 equations as below:

Constraint of Hours per month

5a+3b=8000

Where product a required 5 hours and product b requires 3 hours the above equation can be formed wherein the total hours used will be 8000 hours

Contraint of products to be produced per month, since the company requires to produce 1850 products at a miimum the below equation can be formed:

a+b=1850

Solving both the equations as above

5a+3b=8000

a+b=1850

We get a= 625 units and b=1225 units thus if the company uses the below production schedule it will make a profit as below:

A B

Sales Price per unit 145 75

Cost of [email protected] 15 per hour 75 45

Contribution per unit 70 30

No of units produced 1225 625

Total profit 85750 18750

104500

a+b=1850

**Answer:**

**$0.316 trillion per annum
**

**Explanation**

According to the scenario, computation of the given data are as follow:-

Interest rate = 0.5% = 0.005

Government Borrows = $6 trillion

Time = 20 years

**Required Uniform Annual Payment= Government Borrows × Interest Rate × [(1 + Interest Rate)^Time period ÷ (1 + Interest Rate)Time period] - 1
**

= $6 trillion × 0.005 × [(1 + 0.005)^20 ÷ (1 + 0.005)^20 - 1]

= $0.03 trillion × [(1.005)^20 ÷ (1.005)^20 - 1]

= $0.03 trillion × (1.1049 ÷ 1.1049 - 1)

= $0.03 trillion × (1.1049 ÷ 0.1049)

= $0.03 trillion × 10.533

= **$0.316 trillion per annum
**

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