In 2006, the European Union Tariff on Imported Bananas from Latin

question 125

Multiple Choice

In 2006, the European Union tariff on imported bananas from Latin America was €176 a ton. Suppose 2.5 million tons of bananas were imported in 2006 but then the tariff decreased to €152 a ton in 2007 and as a result, 3 million tons were imported in 2007. What is the tariff revenue in 2007?

• A) €445,000,000
• B) €528,000,000
• C) €440,000,000
• D) €375,000,000

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Definitions:

Effective Annual Rate

The annual interest rate that takes into account the effects of compounding over multiple periods.

Effective Rate

Reflects the total interest payable on a loan or investment, taking into account compounding interest, over a specific period.

Compounded Monthly

Interest on an investment or loan that is calculated each month and added to the principal sum, leading to exponential growth over time.