Assume that l2t = 0.15% and that t = 0. If the one-year interest rate is 5% and the two- year interest rate is 5.75%, then i, is equal to: t+1 O A. 6.20% O B. 5.60% O C 5.15% O D. 5.90%
Q: An American manufacturing company has new equipment with a first cost of $ 25,000, an estimated…
A: Given:- First cost=$25,000 Salvage value=$1500 Recovery period=9 years To calculate:- Book value at…
Q: Part B Answer any FOUR (4) questions of the SIX (6) questions. 1. Managerial economic decisions are…
A: Introduction Managerial economics is a very important application or system for any company because…
Q: Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can…
A: Answer: Given, Country Pretzels per labor hour Cars per labor hour Germany 40 20 Canada 61 14…
Q: What value of T makes these two cash flow diagrams (see figure) economically equivalent at 15%…
A: 1000 + 500(NPV at 15% in year 2) + 1000(NPV at 15% in year 4) + 500(NPV at 15% in year 6) = T(NPV at…
Q: A monopoly A) cannot price discriminate because such a pricing strategy is illegal in the United…
A: In a monopoly market, a single firm is the producer of all the units of a specfiic good due to which…
Q: True or false question below. A bank run occurs when individuals desire to put more value into…
A: A bank run refers to a scenario when a large number of customers withdraw their funds from a bank…
Q: (D). A current account deficit (CA Y) and national saving is less than investment spending (S < I).…
A: Current Account Deficit measures the trade value of a country, where the goods and services that are…
Q: explain why negative externally creates a cost for the society and how it can be reduced give an…
A: Externality is the negative or positive spillover by the consumer or producer which affects the…
Q: A). Discuss the benefits and costs of joining a fixed-exchange area. Explain the concept of optimal…
A: Note:- Since we can only answer one question at a time, we'll answer first one. Please repost the…
Q: Which of the following statement(s) is/are TRUE? I. The US dollar, the XCD dollar and the British…
A: Exchange rate is the price of one currency in terms of another currency and it is important in…
Q: Suppose that the first P300,000 income earned is not taxed at all, the next P500,000 earned is taxed…
A: Introduction Data of income and tax structure has given. Table: Income T(y) tax percentage 0 -…
Q: Questions attempted 2/38 32 of 38 Questions 5 Adverse selection or its reduction explain the…
A: The answer is - D. Stocks and bonds are main sources of financing for company
Q: Which of the following is true about BRIC countries: O a. There is low prospects of growth O b. To…
A: BRICS is an abbreviation for the strong gathering of the world's driving developing business sector…
Q: Generally, countries which have higher average years of education per individual have ______. a.…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: 1. Increases in income oftentimes don’t lead to substantial increases of investment in health and…
A: increases in income considerably decrease contrasts in tutoring/schooling results and work on more…
Q: a. For the demand curve P= 60 - 0.5Q, find the elasticity at P= 10. Instructions: Round your answer…
A:
Q: t 20 additional men. If all men get Php 3.00 per day for a full part day and if the liquid mages are…
A: Given data, 50 men did this job in 30 days, In 20 days the contract will expire. All the men…
Q: If Germany has a comparative advantage over England in the production of heavy tractors, this…
A: Comparative Advantage theory is an international trade theory given by David Ricardo.
Q: Sketch a production possibilities curve on which you illustrate a shift to the right.
A: "As there are multiple questions so as per the guidelines answer is provided to the first question."…
Q: Which of the following statements is correct? a. A fall in the rate of interest will shift both the…
A: In an economy, any change in price or interest rate will lead to change the demand for money by…
Q: Assume that ly = 0.50% and that lt = 0. If the one-year interest rate is 5% and the %3D two-year…
A: Given information Liquidity premium on a 2-year bond l2t=0.50% One year interest rate it=5% and two…
Q: The following production possibilities schedule shows the quantities of buckwheat and corn that can…
A: Opportunity cost refers to decrease in quantity of one good needed to produce more of the other…
Q: 1. If the firms in a monopolistically competitive market are earning economic profits or losses in…
A: The structure of the industry where there are many buyers and sellers in the market and the product…
Q: $1,000 $1,000 2T $500 $500 4 3. ΕΟΥ ΕΟΥ 3T
A: * SOLUTION :- Given that , Interest rate i = 15%
Q: Situs of Taxation is world/global taxation: A. Resident Citizen B. Resident Alien C.…
A: The tax on worldwide income obtained by a resident citizen must be paid. The jurisdiction in which…
Q: What are impact of public debt and expenditure on resource allocation and national income? Justify…
A: The value of products and services generated by a country throughout a financial year is referred to…
Q: pls explain if marginal product function (i.) and (ii) are either convex or concave? what is their…
A:
Q: To achieve the potential gains from international trade, O A. Brazil should produce both quinoa and…
A: Cross-national economic exchanges are referred to as international trade. Consumer commodities, such…
Q: firm total revenue curve is given by TR = aQ - 2Q². Is this a pe mpetitive firm? Explain why or why…
A: In a perfectly competitive market, there are many buyers and sellers with free entry and exit of…
Q: Is globalization and open economy is still the best way for USA economy?
A: Globalization and an open economy are still the greatest strategies to grow the economy in the…
Q: In 2020, the all ages population of Canada was 38092817, out of which the population under 15 years…
A: Introduction The labour force participation rate is a measure of how active a worker is in a given…
Q: 6. Price Ceiling Suppose that, to benefit consumers, the government imposes a price ceiling on milk.…
A: Price ceiling:- A price ceiling can be explained as a pricing limitation, or restriction, placed by…
Q: - Given: C = 102 + 0.7Y , J = 150 - 100 M_{S} = 300, M_{t} = 0.25Y and M_{s} = 124 - 200 ,. Find:…
A: If the amount demanded equals the quantity provided at the value, the market is in Equilibrium. The…
Q: Company B has a P5M loan for a new security system it just bought. The annual payment is P444,000…
A: Loan amount P = 5,000,000 The company decide to pay the loan by paying 500,000 per year and the rate…
Q: Ann consumes two goods, r and y. Her utility function is given by: u(x, y) = (x+1)VJ. The price of a…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 2021, 2.2 billion rials. Oman has taken measures such as reduced spending and plans a 5% value-added…
A: Aggregate demand is a measurement of the total amount of demand for all finished goods and services…
Q: Suppose one-year German Treasury bill pays 4.24% and one-year Canadian Treasury bill pays 2.41%. The…
A: PLEASE FIND THE ANSWER BELOW. EXCHANGE RATE: An exchange rate is the value of one nation's…
Q: The short-run aggregate supply curve will shift up if: wages decrease. productivity increases.…
A: Short run aggregate supply curve shows direct relationship between price and real output supplied.
Q: A stimulative monetary or fiscal action should increase aggregate demand. What factors may limit the…
A: Answer -
Q: Both quotas and subsidies O a. benefit goverments only O b. benefit both consumers and local…
A: Quotas and subsidies are forms of trade barriers in international trade done by the governments,…
Q: In theory of comparative advantage, which statement is correct O a a country should produce all…
A: The theory of comparative advantage in international trade is given by David Recardo.
Q: P2 P1 MC = AC D MR Q1 Q2 A firm with market power is observed to be producing at output level Q2,…
A: A firm has market power when it sells differentiated goods or unique good, which gives the firm…
Q: Suppose your mom sends you $500 for your birthday and you deposit it in your chequing account. The…
A: Deposited amount is $500 and rr=10%
Q: What likely occurred during 2018 if nominal GDP did not change and real GDP decreased, relative to…
A: Real GDP is the market value of final goods and services produced in the economy within a given…
Q: An investor invests the following amounts of money in a bank account: R18,850 on 1 September 2019 ,…
A: An annuity is a yearly payment, like one delivered under a contract to produce retirement income,…
Q: Which of the following shifts the short-run, but not the long-run, aggregate supply right? a…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: Suppose that, in starting a new business, you leave your current job at a healthcare company that…
A: Opportunity cost represents the forgone benefits from the next best alternative. It is also known as…
Q: Assume Country X has an electricity market with supply and demand being given below: Qo = -P + 200…
A: Given: Qd=-Pd+200 Qs=-3Ps+300 Note: Due to multiple subparts being posted, the first three subparts…
Q: In a market economy, the compensation of labour is determined by the interaction of demand and…
A: A market economy is a type of economic system where the economy is regulated by demand and supply…
Step by step
Solved in 2 steps
- Suppose that an oil well is expected to produce 1,200,000 barrels of oil during its firstyear in production. However, its subsequent production (yield) is expected to increaseby 9% over the previous year's production. The oil well has a proven reserve of10,500,000 barrels. (a)Suppose that the price of oil is expected to be $120 per barrel for the next six years.What would be the present worth of the anticipated revenue stream at an interest rateof 10% compounded annually over the next six years?(b)Suppose that the price of oil is expected to start at $120 per barrel during the firstyear, but to increase at the rate of 3% over the previous year's price. What would bethe present worth of the anticipated revenue stream at an interest rate of 10%compounded annually over the next six years?(c)Consider part (b) again. After three years' production, you decide to sell the oil well.What would be a fair price?A 10-year government coupon bond has a face value of $1,000 and a coupon rate of 5% paid annually. Assume that the interest rate is 6% per year. What is the bond’s PV? (You can sum the PVs for each of the coupon payments and the final $1,000, or you can use the annuity formula in the text (at p. 103) to save some work.)Suppose you purchased a corporate bond with a 10-year maturity. a $1,000par value, a 10% coupon rate, and semiannual interest payments. What all this means that you receive $50 interest payment at the end of each six-month period for 10 years (20 times). Then, when the bond matures, you will receive the principal amount (the face value) in a lump sum. Three years after the bonds were purchased, the going rate of interest (coupon rate) on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (3 years after the purchase)?
- Suppose that $12,000 is placed in a bankaccount at the end of each quarter over the next 15years. What is the future worth at the end of 15 yearswhen the interest rate is 8.5% compounded at thegiven intervals?(a) Quarterly(b) Monthly(c) ContinuouslySuppose you have the alternative of receiving either $15,000 at the end ofseven years or P dollars today. Currently, you have no need for the money, soyou could deposit the P dollars into a bank account that pays 6% interest compounded annually. What value of P would make you indifferent in your choice between P dollars today and the promise of $15,000 at the end of seven years?Suppose that you purchase a 2 year coupon bond at the time it is issued for $1100. The face value of the bond is $1000, with annual coupon payments of $80. a. What is the bond’s “coupon rate”? b. What is the bond’s “current yield”? c. What is the bond’s (nominal) “yield to maturity”? d. If you hold the bond for 1 year and sell it for $1035 (after collecting the first coupon payment), what is your “holding period rate of return”? Please answer all part otherwise Dounvote
- 10. The compound interest on a certain sum of money at 25% for 3 years is Php 47,656.25. Its simple interest at the same rate and for the same period is Php Blank 1.1. Given the cash flow diagram as shown, if interest is 5%, determine the equivalenttotal present and accumulated amount. 2. How much do you need to deposit today into an account that pays 3% per year sothat you can make 10 equal annual withdrawals of P1000, with the first withdrawalbeing made seven years from now? 3. Four-year lease agreement requires payments of P10000 at the beginning of everyyear. If the interest rate is 6% compounded monthly, what is the cash value of thelease?The sole proprietor of the FM2 Financial Services, Bondo, receives allaccounting profits earned by her firm and a K28,000-a-year salary she pays herself. Itis noteworthy that she also has a standing salary offer of K35,000 a year if she agreesto work for Bank of Zambia. If she had invested her capital outside her own company,she estimates that would have made a return of K22,000 a year. Further, informationhas reached you that last year, Bondo’s accounting profit was K50,000. Calculate hereconomic profit?
- 4. A P4,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at th e end of 75 days? ANSWER: 4,133.339.How much will you accumulate if you invest $800 a year for 10 years at a rate of 8% per year? How much will you accumulate if $200 per quarter is invested at a rate of 8% per year compounded quarterly? 10.You now have $20,000 which can be invested at 9% per year. a.For how many years can you spend $2671? b.What is the most you can spend per year for the next 20 years?You plan to retire in 15 years. After retirement you will need $20,000 per yearfor 20 years. If interest remains at 8% compounded annually, how much shouldyou deposit each year until retirement? (Note that you will make a total of 15 endof-year deposits, and your first withdrawal will be made at the end of 16th year.)(a) $13,091 (b) $7,811(c) $6,993 (d) $7,232