Problem
1. Determine the APR if the nominal rate is 7% compounded continuously.
2. Current annual consumption of energy is 78 billion units and this is expected to rise at a fixed rate of 5.8% each year. The capacity of the industry to supply energy is currently 104 billion units.
(a) Assuming that the supply remains steady, after how many years will demand exceed supply?
(b) What constant rate of growth of energy production would be needed to satisfy demand for the next 50 years?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.