Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000. Cash flows in this series will increase by 7% each period. There are a total of nine cash flows in this series. What is the
Q: Explain how each of the following factors can cause demand to shift either to the left or to the rig...
A: The quantity of an item that consumers are willing and able to consume at various prices over a set ...
Q: Give an example of a good that has a positive externality. Give a second example of a good that exhi...
A: Externality refers to spill-over effect of a good or service on the third party who is not involved ...
Q: DVH Technologies purchases several parts for the instruments it makes via a fixed-price contract of ...
A: fixed-price contract is AN agreement of a pre-determined worth of payment, that's not subject to cha...
Q: 2. Show graphically that tax cuts are a lesS effective fiscal policy tool the greater the sensitivit...
A: In an economy, when investment is highly sensitive to the interest rate, it is the situation when ID...
Q: The adverse selection of wage cuts is a theory for which phenomenon? deflation full employment infla...
A: Adverse selection: - Adverse selection is a problem that arises because of the difference in the kno...
Q: Which of the following is NOT an input?
A: To find : Which is not input.
Q: 90 80 70 60 50 40 30
A: Equilibrium is the state wherein supply and demand balance one another, and therefore costs become s...
Q: Amid growing concerns that a virus outbreak from Asia will turn to a global pandemic, Ivan the Inves...
A: Given information Investor invests in 3 sectors with 3 strategies. Given pay off Virus contr...
Q: In terms of the goals of macroeconomics, `stability" means O low inflation and low unemployment maxi...
A: Note:- “Since you have asked multiple question, we will solve the first question for you. If you wan...
Q: Suppose the equilibrium price for good quality used cars is $20,000. And the equilibrium price for p...
A: The equilibrium price of good quality car PGood =$20,000 The equilibrium price of poor quality car P...
Q: Which of the following is a reason why countries willingly weaken sovereignty through bilateral and ...
A: In the second half of the 19th century, many developing or developed nations have opened their bound...
Q: A. The price of gasoline increases from 16 per barrel to 30 per barrel and as a result, the demand p...
A: A. P1=16 P2= 30 Q1=550 Q2= 300
Q: Directions: Choose the term inside the box that corresponds to each of the following statements belo...
A: 1. A social determinant of health and development where people get to be exposed to particular hea...
Q: Which of the following groups of people are regarded as economically inactive? A) Individuals who h...
A: Economically Inactive : The economically inactive can be defined as the ones who are neither employe...
Q: ssess the following statements: 1. At any moment in time, households (in aggregate) demand a greater...
A: Statements 1) 1st statement is true because when the interest rate is lower then firms wants to acqu...
Q: There are differences and similarities among the different trade models. Here are some of them: -The...
A: Answer to the 1st blank is "only one factor of production" (as goods produced in this model are homo...
Q: The federal estate tax is a tax on property (cash, real estate, stock, or other assets) transferred ...
A: Estate tax: It is the tax that is imposed on the property when some individual died when the people ...
Q: 3. Does minimum wage legislation have other effects? Explain with the help of a diagram. a. Explain:...
A: The lowest remuneration that could be paid by employers legally to the employees for doing work is k...
Q: Warrensburg is a small college town in Missouri. At the end of August each year, the market demand f...
A: According to the law of demand, the quantity demanded of a product will fall in response to an incre...
Q: Abbott wants to increase their marketing for Pedialyte leading up to St. Patrick's Day this year. Th...
A: Given, The Ad Cost : $5,000,000 at week 2/13/2022The Ad Cost on 3/6 : $800,000Sales on 2/20 : $500,0...
Q: Japan and the United States are major trading partners and the exchange rate between the Japanese ye...
A: Flexible exchange rate A flexible exchange rate system refers to in which the exchange rate is deter...
Q: The bulk of government expenditure flows into two main areas of responsibility: education and healt...
A: Meaning of Production Possibility Frontier: The term production possibility frontier refers to the...
Q: Carrots (in metric 128,520 214,200 282,744 334,152 359,856 385,560 tons) 97,825 Potato (in metric 34...
A: Production possibility frontier shows all the possible combinations of production bundles that utili...
Q: XYZ company can manufacture their own products and sells them. They are able to control the demand b...
A: Profit maximizing quantity of output is where marginal revenue equals marginal cost.
Q: In 2013 the UK government introduced a Help to Buy scheme that was aimed at helping people to get on...
A: When compared to buying a property on the open market, Help to Buy makes climbing on the housing lad...
Q: Price (dollars per bushel) 6 5 4 3- 2 4 5 Quantity (millions of bushels per year) 2 3 6 At harvest t...
A: Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity d...
Q: The government Bets a minimum wage above the Current eajuilibrium wase level. (4) what effect does i...
A: Meaning of Consumer Surplus: The term consumer surplus refers to the situation under which the con...
Q: Are low-income delinquents reacting against middle-class values, as Cohen contends, or is there a lo...
A: Miller vs. CohenBoth Albert Cohen and Walter Miller believe that deviant subcultures emerge in margi...
Q: An annual fixed operating cost of P10,000,000 is incurred by a Medical Devices Manufacturing Company...
A: Given information, Annual Fixed operating cost: P10,000,000 Variable cost: P1,375 Selling price: P4...
Q: As indicated, some of the cash flows are expressed in future (then-current) dollars and others in cu...
A: As per the question, nominal interest rate = Real interest rate + Inflation Rate=10%+6%=16% or 0.16....
Q: • The economic growth measures the ____. a. increase in PPP b. increase in education index c. increa...
A: Government has certain tax revenue available with them through which they have to carry out expendit...
Q: 2. Consider the following normal-form representation of a simultaneous game. Player 2 C Player 1 T 3...
A: Nash equilibrium is achieved when the players chose one outcome the maximum times. In this game the ...
Q: An economy in which GDP and employment are rising is experiencing wh Deflation Inflation O Hyperinfl...
A: An economy in which GDP and employment are rising is experiencing what ?.
Q: A government replaces progressive taxes with regressive taxes. What is the likely outcome? a. Dist...
A: In an economy, a progressive tax is when higher income tax is imposed on the people with higher inco...
Q: If house holds decide to save a larger portion of thier income, what effect would this have on the o...
A: The recompense that a factor of production receives for his services is referred to as income. Rent,...
Q: Land only Is a free gift of nature
A: To find: What is land.
Q: For questions 4-6: A firm has weekly revenue of $900. The firm's total cost is $1250 per week. The f...
A: Given; Profit= $900 TC=$1250 a) TC= FC+VC Therefore; FC+VC= $1250 Firm will shut down when TR>VC ...
Q: oints on a utility possibility curve represent a given distribution of well-being between two person...
A: The satisfaction that is in turn being received by a consumer from the consumption of a service or g...
Q: Why should decision makers set MB equal to MC?
A: The marginal benefit of an action is the extra benefit related to a one unit increase within the amo...
Q: A start up business is considering two types of equipment - data are as follows: TYPE A TYPE B First...
A: Given, First Cost of Type A : P200,000First Cost of Type B : P300,000
Q: Consider the multiplicative demand function Q = 4*P-1.2. Suppose price is reduced from 8 to 7. What ...
A: The marginal effect is a measure of the instantaneous effect that a change in a specific explanatory...
Q: Managerial Economics: California’s Cap-Trade Law Faces Fall Ballot Challenge 1. Other than th...
A: Ans) 6) When more substitutes are available, demand is more elastic. While if less substitutes are a...
Q: A firm used $1,900 worth of peanuts and $100 worth of salt to produce peanut butter. This required c...
A: Value-added is a method of calculating the final value of the output of a firm and GDP without the i...
Q: tt wants to increase their marketing for Pedialyte leading up to St. Patrick's Day this ha Superbowl...
A: *Answer: Given information Ad cost=$5000000 at week 2/13/2022 Ad cost on 3/6=$800,000 Sales on 2/20...
Q: ck to Assignment Attempts Do No Harm /2 5. Calculating tax incidence Suppose that the U:S. governmen...
A: Taxes are compulsory commitments collected on people or companies by an administration element wheth...
Q: If money supply and money demand both increased, what would be the effect on interest rates and inve...
A: The intersection point of demand and supply curve determines the interest rates and investment. When...
Q: The Phillips curve shows the relationship between inflation and what? A) Unemployment. B) The rate ...
A: Inflation is defined as rising prices in the economy. A more precise definition of inflation is a su...
Q: A start up business is considering two types of equipment - data are as follows: ...
A: We need to calculate, By present worth cost method, computation of the value of Type A and Type B:
Q: Now consider the economy in the steady state: The steady state is defined as a point in the long run...
A: A system or process is considered to be in a steady state in systems theory if the factors that desc...
Q: Why aren't more resources committed to proper financial system prudential oversight to curb excessiv...
A: Money was evolved since the ages and people are using money for various purposes. There are business...
Step by step
Solved in 2 steps with 1 images
- Suppose 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?Consider a uniform series of cash flows. The first cash flow of $10,000 occurs at time 10 and the last cash flow in the series occurs at time 20. If the interest rate is 8% per period, what is the present equivalent (time = 0) of the series of cash flows?For the following cash flow find F for two cases , first , assume that the inter - period cash flow earns no interest , second , the inter - period cash flow earns interest . Assume the interest rate is 6 % per year , compounded quarterly . Show all your work , cash flows , before , and after , how did you calculate the effective interest rate for each case , and why .
- Suppose P100, 000 is deposited in an account that earns 8% compound interest that is compounded semi-annually. In how many years will the initial investment triple? a.13.01 years b.14.01 years c.14 years d.13 years As advised by your financial adviser, you started to save P15,000 and deposited it every in the beginning of each month in a bank with 6% interest compounded annually, How much is the total amount after 8 years? (Hint: Future Value of General Annuity Due) a. 4,935,561.09 b. 3,495,561.09 c. 5,493,561.09 d. 9,435,561.09At what simple interest rate:a) Will $20,000.00 rise to $21,100.00 in one year?b) Will $720,000.00 rise to $744,000.00 in 10 months?Assuming an interest rate of 10% compounded annually, answer the following questions:(a) How much money can be loaned now if $20,000 is to be repaid at the end of five years?(b)How much money will be required in five years in order to repay a $15,000did loan borrow now?
- Give typing answer with explanation and conclusion For an APR of 10% per year, if the interest is compounded weekly, determine the nominal rate per (a) 6 months and (b) 2 years. The nominal interest rate per 6 months is %. The nominal interest rate per 2 years is?Answer true or false for the following questions: a) If you multiply the A/F, F/P, and P/G factors together, you will obtain thevalue for the G/A factor. b) For an arithmetic gradient series of monthly cash flows that begins at the endof 25th month, the A/G factor will yield an “A” value beginning at the end oftwo years. c) Consider arithmetic gradient series, G = 100, starting at time period 7 withfive cash flows. An equivalent uniform series A, starting at time period 2 forfour time periods is obtained by 100(P/G, i%, 6)(P/F, i%, 4)(A/P, i%, 4). d) The difference between consecutive cash flow balances corresponding toconsecutive time periods in discounted payback period calculation is equaland the cash flow balance is zero at payback period. e) If the B/C ratio for three alternatives A, B, and C are 2.8, 3.3 and 1.95respectively, the best alternative is always “B” as it has the largest B/C ratio.Solve by using formulas. (Round your answer to the nearest cent.) Ordinary Annuity AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Valueof the Annuity (in $) $3,000 every 6 months 5 5.0 semiannually $
- 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)?a. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded quarterly? b. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded monthly? c. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded daily? d. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded continuously? e. At what compounding period does the effective annual interest rate very closely approximate continuous compounding? (Consider to the nearest 0.0001)What is the amount of 10 equal annual deposits that can provide five annualwithdrawals, when a first withdrawal of $3,000 is made at the end of year 11 and subsequent withdrawals increase at the rate of 6% per year over the previous year's rate if(a) the interest rate is 8% compounded annually?(b) the interest rate is 6% compounded annually?