If money is worth 7%, obtain the present value of a perpetuity of P64,500.00 payable annually when the first payment is due at the end of 5 years. O a. P702,945.00 O b. P702,954.00 O c. P720,954.00 O d. P702,495.00
Q: C: Payday loans Samson can choose between two goods: consumption this week, and consumption next…
A: The budget constraint refers to the boundary of the opportunity set i.e. all possible combinations…
Q: What does GDP count and not count that it should? Is GPI is a better indicator? Although GPI…
A: GPI looks at a combination of economic empowerment and social indicators to create a picture of…
Q: Unsystematic risk is not compensated in equilibrium because it can be eliminated for free through…
A: Risk is the natural factor of any investment and financing. Risk can be systematic and unsystematic.…
Q: Question 1: Explain why the following statement should hold: Əv(p, w) Əv(p, w) Opi Әрк = 0 for any…
A: Let us assume that ∂v∂pk=0as well as∂v∂pi=0 It means v only changes with w that is wealth
Q: A college is considering investing $6 million to add 10,000 seats to its football stadium. The…
A: When the revenues are more than costs the project will be beneficial. A project will be accepted…
Q: For the regression model Y = B1 + B₂X2 + B3X3 + e, the following estimation results are obtained:…
A: Marginal value is the value derived from an additional unit of input / variable. Marginal value is…
Q: Mary has the following utility function: u(x, y) = 3 ln(x) + 2y. Her income is given by I = 10 and…
A:
Q: Which of the following is an example of a bourse market? a. Ahorro Muebles, a store that sells…
A: Simply put, a bourse is a stock exchange or a market. It makes it easier to acquire and sell shares.…
Q: 2. Why does sharecropping continue to exist as opposed to laborers renting land and paying for the…
A: In a sharecropping system, a tenant is given access to the land in exchange for a portion of the…
Q: The classical dichotomy is the separation of real and nominal variables. The following questions…
A: The classical dichotomy in macroeconomics refers to the assumption, attributed to classical and…
Q: A firm uses two inputs, capital (K) & labour (L). Given the production function: Q(K.L) = (KL) a) Is…
A: In the study of economics, production functions represents the relationship between the quantity of…
Q: Two of the key global economic trends shaping the world are the Chinese Infrastructural Expansion…
A: Yes it is true China has emerged as a global powerhouse in terms of production and the reason why it…
Q: In an economy, the currency drain ratio is 0.38 and the desired reserve ratio is 0.02. Calculate…
A: Money multiplier is the no. that shows how many times the money is multiplied. The formula of…
Q: Use the table below to answer the following questions: Quantity Demand (Price) Marginal Revenue…
A: In perfect price discrimination, Firm will charge the price equal to consumer's willingness to pay.…
Q: 5. In the short run, the general view of the relationship between housing supply and the price of…
A: When talking about housing market, it can be seen that the supply of housing is inelastic while the…
Q: 1. Suppose you are advising a mayoral candidate in your town. The candidate’s platform includes…
A: In the marketplace, if an individual firm is continuing its operations with the presence of no other…
Q: The table shows the individual seller costs of selling Krispy Kreme doughnuts for a fundraiser. Name…
A: Producer surplus is the area below price and above supply curve. Producer surplus = Price -…
Q: Dependent Variable: INTEREST Method: Least Squares Date: 08/08/20 Time: 17:38 Sample: 2010M01…
A: This table shows the correlation between error terms at different times. The correlation shows the…
Q: Why does inflation occur
A: inflation is the pace of inflation in costs over a given timeframe. inflation is regularly a wide…
Q: Let kids denote the number of children ever born to a woman, and let educ denote years of education…
A: Regression analysis refers to the relation between the dependent variable and independent variables.…
Q: From the information from XYZ Highland below, 1 2 3 4 5…
A: Nominal GDP is the value of all final goods and services produced within the domestic territory of a…
Q: In the following scenario, identify the correct sequence of events. If there is a $1 decrease in…
A: Aggregate expenditure / Aggregate demand is a sum of consumption demand, investment demand,…
Q: The petrol industry in Dubai has become increasingly concentrated in recent decades. The number of…
A: When a small number of firms dominate the market, this is known as an oligopoly market structure.…
Q: How did you come up with the Fw = A( F/A, i1, n1 ) ( F/P, i2 , n2 ) + A( F/A i2, n2 ) formula?
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: For the cost and price functions below, find a) the number, q, of units that produces maximum…
A: The cost Equation is given as C(q) = 90 + 12q The demand equation is given as P = 64-2q
Q: A firm wants to maximize its expected profit. The firm must choose the production quantity q. The…
A: Maximization of profit is the process of increasing the revenue to the highest point till the…
Q: Fill in the missing values in the following table, selecting the answers closest to the values you…
A: According to the quantity theory of money demand MV=PQ. This equation is given by American,…
Q: What is the relationship between the monetary base and the Fed's balance sheet? The monetary base…
A: The top organisation in the banking industry is the central bank. All other banks' operations are…
Q: Exercise 3. Consider the model economy where the government taxes consumption and uses the tax…
A:
Q: A company is going to buy a new machine for manufacturing its product Four different machines are…
A: Utilizing the annual cost method, the total annual cost of a machine or asset is calculated as…
Q: A lot in Cainta Rizal can be acquired at a down payment of P200,000 and a yearly payment of P30,000…
A:
Q: For the following three questions, assume that leisure is a normal good. a A worker has a wage of…
A: Backward bending labor supply curve is defined as the labor curve that reflects a situation that…
Q: 6. The monetary base is composed of: Reserves a. b. C. Coins and notes issued by the Fed Currency…
A: 17. When the interest rate is adjusted for inflation, it is the real interest rate. Hence, we can…
Q: Which of the following is NOT one of the forms of production that is excluded in GDP? A. Household…
A: Gross domestic product measures the market value of final goods and services produced within the…
Q: Question 1: Explain why the following statement should hold: Əv (p, w) apk = 0 for any good k only…
A: Here v is a function of price vector and consumption bundle of good k and i. v function can be…
Q: In an economy, savings deposits are $10,000 billion, currency is $1,500 billion, checkable deposits…
A: M1 includes Currency and checkable deposit. M2 includes M1 , saving deposits, other deposits and…
Q: Explain the difference between the Euler’s Theorem and the Total Differential using a production…
A: Euler’s theorem explains the partial derivation for the variables in the production function.…
Q: Table: The Market for Chocolate-Covered Peanuts Price (per bag) Quantity Demanded (bags per month)…
A: Supply is the amount of output accessible in the market. i.e., it is the plan expressing quantities…
Q: In Promaine Flats, Nevada there were two restaurants: Sal Monella and Road Kill Café. Current profit…
A:
Q: How would you analyze your data for a quantitative research proposal?
A: Data analysis is a crucial component of any quantitative research proposal, and researchers must…
Q: Question 6: Consider a two-agent two-good barter economy. Agent 1 only cares about good 1, and agent…
A: Since agent 1 utility is only affected by good 1. So if it gives some or all of good 2 to agent 2,…
Q: Step 1: Draw a supply-and-demand diagram. Price is on the vertical axis, quantity is on the…
A: When talking about general framework of demand and supply model, it can be said that this model…
Q: Resource availability, markets, and economic formulation are elements of Lewis' approaches to…
A: Industrial development is defined as the process of growing and promoting development of new…
Q: The following production function, q (L,K) = -K ¹/4 L 1/2+K1/6, will have an average cost function…
A: Returns to scale refers to the proportionate change in output when the respective inputs are…
Q: Suppose that production function is Y = K¹/³ (AN) 2/3 and competitive firms hire capital and labor…
A: Given, Y=K1/3(AN)2/3 Competitive firms hire capital ad labor to produce outr is the return paid to…
Q: a. Assume that the elasticity of demand for Fanta is -0.5 while the elasticity of supply is 0.7.…
A: Elasticity of demand is defined as the responsiveness of quantity demanded of a good to its own…
Q: 10. Which economic variable is determined by the Quantity Equation: M (Money supply) V (Velocity of…
A: Quantity theory of money shows the relationship between Money supply , Velocity , Quantity( Real…
Q: The costs of operating a global strategy can be greater than the benefits True or false?
A: International trade is the movement of commodities and services among various nations throughout the…
Q: The above is a regression outputs for a stock return of a bank (RMQG) against the market return…
A: Step 1 The regression equation shows the relationship between dependent and independent variables.…
Q: Natural resources are: more important determinants of productivity today than ever before. the…
A: Natural Resources are defined as the resources that occur in nature and are used for consumption and…
Step by step
Solved in 2 steps with 2 images
- 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) ContinuouslyPlease no written by hand and no emage You owe UJ R1 000 due in three years from now and R8 000 due in five years from now. He wishes to reschedule his debt so as to pay two sums on different dates, one, say X, in one year from now, and the other, which is twice as much (ie 2X), five years later. UJ agrees, provided that the interest rate is 18% per annum, compounded quarterly. What are your payments?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?
- 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?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 small business with an initial outlay of $ 12,000 yields$ 10,000 during the first year of its operation and the yield increases by$. 1,000 from its second year of operation up to its 10th year of operation. Atthe end of the life of the business, the salvage value is zero. Find the presentworth of the business by assuming an interest rate of 18%, compoundedannually.
- Pls solve for the ordinary annuity of the following: Joe deposits $22,000 at the end of each year for 7 years, in an account paying 6 % compounded annually, how much will he have on deposit after 7 years? Ans: $184,664.43 Napoleon deposits $1,200 at the end of each quarter for 10 years, in an account paying 8 % compounded quarterly, how much will he have on deposit after 10 years? Ans: $72,482.38 Jose wants to retire in twenty years and for this purpose he is depositing $200 at the end of each month in a sinking fund that pays 7.2% compounded monthly. If he will be doing this for twenty years, then how much money will be there for him when he retires? Ans: $106,752.47You 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) $7,2322.4 A man wishes to provide a fund for his retirement such that from his 60th to 70th birthdays hewill be able to withdraw equal sums of P18,000 each for his yearly expenses. He investsequal amounts from his 41st to 59th birthdays in a fund earning 10% compounded annually.How much should each of these amounts be?
- Find the present worth today in real value corresponding to the cur- rent values shown below for a 4 percent ination rate and a 4 percent interest rate. a. $400 three years from now b. $400 three years ago c. $10 next year d. $350 983 in 10 years from now e. £1 one thousand years ago the answer is 292 f. $1 000 000 000 three hundred years from now5. Mr. Jo needs P 4,000,000 immediately to pay for a new home. Having insufficientfund for this, he borrows P 2,000,000 from an insurance company and repay the loanevery six months for 15 years, the first payment being at the end of 8 years from now.If the insurance company charged him 8% compounded semiannually, how much isthe amount of each payment?Which of the following investment options willmaximize your future wealth at the end of 18 years?Assume any funds that remain invested will earn anominal rate of 12% compounded monthly.(a) Deposit $8,000 now.(b) Deposit $120 at the end of each month for thefirst 12 years.(c) Deposit $105 at the end of each month for 18years.(d) Deposit a lump sum in the amount of $35,000 atthe end of year 12.