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You are appointed secretary of treasury of a recently independent country called Rugaria. The currency...

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Accounting

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You are appointed secretary of treasury of a recently independent country called Rugaria. The currency of Rugaria is the lav. The new nation began fiscal operations this year and the budget situation is that the government will spend 9 million favs and taxes will be 8 million lavs. The difference will be borrowed from the public by selling 10-year government bonds paying 4 percent interest. The interest on the outstanding bonds must be added to spending each year, and we assume that additional taxes are raised to cover that interest. Assume that the budget stays the same except for interest on the debt for 10 years. After one year, government expenditure is 9.04 million lavs (enter your response rounded to two decimal places) and debt is million lavs (enter your response as an integer)

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