You borrow $9,500 at 14% per year and will pay off the loan in three equal annual payments with the first occurring at the end of the fourth year after the loan is made. The three equal annual payments will be $6,062.4. Which of the following is true for your first payment at the end of year 4?
Q: Compare the major differences between relative income, life-cycle and permanent income hypotheses of…
A: The term “income” normally implies to the amount of money, property, and other transfers of value…
Q: 4. ) James' income was $67,000 in 2010, $72,000 in 2014, and $78,000 in 2017. The Canadian CPI was…
A: Given The below table shows that James' income and CPI in year 2010, 2014 and 2017 Year Jame's…
Q: What are likely to be the effects on the DEMAND for leather if there is: a) A rise in the price of…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Derive the equation of the isoquant for the production level Y = 1 (with K as a function of L).
A: We have given a production function F(L,K)=L23K23 ...... (1) We have to find the isoquant…
Q: How does commodity subsitution bias influence the CPI? The CPI ____ consumer subsitutions between…
A: Consumer price index (CPI) measures the price of basket of goods and services consumed by a typical…
Q: The people on Coral Island buy only juice and cloth. The CPI market basket contains the quantities…
A: Inflation rate is an expansion in the degree of costs of the labor and products that families…
Q: Fill in the blanks. Price $5 $4 $3 $2 $1 Quantities Demanded by Jill 0 1 2 3 4 Refer to the above…
A: Consumer surplus is the difference between the consumer's maximum willingness to pay and actual pay.…
Q: A significant, sustained rise in oil prices lowers the unemployment rate's natural rate. True
A: When someone is actively looking for work and is considered to be employable, they are said to be…
Q: Refer to Figure 4-1. If the market price is $3.00, what is Kendra's consumer surplus? A $6.50 B…
A: Demand curve shows inverse relationship between price and quantity demanded.
Q: How did businesses change over the period 1870-1900? Provide three examples of successful people,…
A: The organisation and management of American industry underwent a significant transformation in the…
Q: How has the real federal minimum wage rate changed? The real federal minimum wage rate _____. A.…
A: When talking about the real federal minimum wage rate, it can be said that it is the minimum level…
Q: List of the Six Macroenvironment Forces. Explain how you, as a business owner, adapt to each of the…
A: Microenvironment The environment that directly affects your business is known as the…
Q: Suppose that the Foreign country experiences positive news following the discovery of a valuable…
A: Foreign currencies are demanded by domestic households, firms, and governments who wish to purchase…
Q: Under which of the following conditions will the unemployment rate rise? Select one: a.When the…
A: The proportion of unemployed people in the labour force is known as the unemployment rate. As a…
Q: V5
A: The law of demand illustrates the relationship between price and quantity demanded of a good. The…
Q: The United States has a current account deficit equal to about 3.5 percent of GDP. Suppose that the…
A: Gross Domestic Product (GDP) is defined as the final value of all goods and services produced during…
Q: How is GDPaffected by the nominal and effective interest rates
A: Introduction GDP is the basic accounting measure of total goods and services produced in a economy.…
Q: Plot: Ma=$Y-2(i) $Y vs.. vspa in a space. y-axis ↑ x-axij
A:
Q: With a inflow of migrants, the Rybczynski Theorem suggests : Group of answer choices a)…
A: Rybczynski Theorem is defined as a theorem which states that when the endowment a given resources…
Q: Cartel theory is usually understood as the doctrine of economic cartels. However, since the concept…
A: Oligopoly: It refers to a market that is dominated by a few suppliers. They are found in all…
Q: Estimate the benefits from increasing the protection for 50,000 powerplant workers. Average hourly…
A: Increases in protection for the worker leads increases the productivity in the power plant because ,…
Q: A consumer of two goods has indirect utility v(p, w) = P₁ + P₂ (a) Find the indirect money-metric…
A: The indirect money metric utility function is the minimum cost of purchasing bundles of goods at…
Q: Suppose that Bob and Cho are the only suppliers of pizza slices in a particular market. The…
A: Demand for a particular commodity is influenced by its price as well as a number of other factors. T…
Q: Prepare a list of examples for the 3 sectors of economy. (Format is provided below) Sectors…
A: Economic activities are human activities that generate income. The three major categories of…
Q: Consider the market for rubber. suppose a massive forest fire causes 50% of the world’s supply of…
A: Supply curve represents the locus of points which depict the amount of product which suppliers can…
Q: A Chinese high technology manufacturing firm has a production function of q=12L0.20 0.80 (based on…
A: Given Production function: q=12L0.2K0.8 ...... (1) Input prices are w=$2 and r=$8…
Q: x Consider the following budget line X2 W Slope = N X₁ K If the prices and incomes are: P₁ =2, P2=…
A: The given curve in the graph is the budget constraint for the two goods x1 and x2
Q: e market supply curve of rubber erasers is given by QS = 35,000 + 2,000P. The demand for rubber…
A: When the market demand curve intersects the supply curve then equilibrium arises.
Q: Question 8 Note: This question is similar to end-of-chapter problem 3.2 and it is restated here in a…
A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…
Q: Question 1 In 2019 and in 2021, consumers bought only books and pens, and the table shows the data.…
A: CPI is the consumer price index which is used to measure of average change in price of market basket…
Q: The people on Windy Island buy only juice and cloth. The CPI basket contains the quantities bought…
A: A consumer price index is a cost list, the cost of a weighted typical market bushel of purchaser…
Q: What information is given by the CPI? The CPI tells us _______. A. the price level in a given…
A: The general rise in the price of goods and services during a period of time with the fall in the…
Q: Explain what you believe is common to successful entrepreneurs and what the evolution of…
A: An entrepreneur is a person who decides to take the risk of Starting a new business. Entrepreneur is…
Q: Justin inherited a regular endowment of P100,000 every end of 3 months for 10 years. However, he may…
A: Given that, Regular Endowment = P100,000 Time = 4 Years Rate Of Interest = 14% To calculate: Lump…
Q: How does a smartphone illustrate new goods bias in the CPI? Because the 13 items that cost $3,000 in…
A: CPI measures the average change in the prices of consumer goods. CPI compares the prices of the…
Q: What is the difference between fixed costs and variable costs?
A: Cost is the monetary value of goods and services purchased by producers and consumers. Cost is the…
Q: A consumer of two goods has indirect utility v(p,w) = -1/2 P₁+P₂ (a) Find the indirect money-metric…
A: The indirect money metric utility function is the minimum cost of purchasing bundles of goods at…
Q: . What conditions are necessary in order for a Monopolist to be able to successfully price…
A: Monopolist refers to the single firm in the market or there is only one firm in the market. There is…
Q: What is the standard of living,?
A: Economic growth is the rise in an economy's production of goods and services. The rise in capital…
Q: Laura’s cleaning service is a profit-maximising, competitive firm. Laura cleans a whole house for…
A: Here, given information is: Laura'a per house revenue: $156 Laura'a per day total cost: $1680 Her…
Q: What are the advantages of a sole proprietor?
A: A sole proprietor runs his own business on his own and also has total control of the business in his…
Q: (A) (B) (C) (D) A B Which graph in the above figure represents the isoquants where, as the amount of…
A: The labor market alludes to the supply of and demand for labor, in which employees give the supply…
Q: Illustrate the cash flow diagram. An investor bought a jaw crusher worthP25,000.00 with an expected…
A: Initial investment, C0 = P25,000 Required return, r = 6% Number of years, n = 8 years Let A be the…
Q: Which term refers to a legally established maximum price that firms may charge? A a price ceiling B…
A: Price floor is a minimum price at which a seller can sell a commodity. Subsidy is the amount of…
Q: 3. a. Use the mathematical expression for eqm Y for an open economy (Y=C+I+G+X-IM) to explain what…
A: The market value of all final goods and services produced in a nation over a certain time period is…
Q: The Stolper-Samuelson theorem predicts that inequality will fall in developing economies. But the…
A: Stolper-Smuelson theorem predicts that inequality will fall in the developing economies. it argues…
Q: The table below summarizes the productivity of workers in bread and shirt production in two parts of…
A: This table is actually showing the productivity of breads and shirts which is given here by using…
Q: Which is updated more frequently, the CPI market basket, the Consumer Expenditure Suvey, or the…
A: Inflation refers to the increase in the general price level. The primary role of the central bank is…
Q: #5
A: In two Part tarrif System We produce till= mc
Q: Calculate the annual interest (in $) and current yield (as a %) of the bond. (Round your percentage…
A: An interest rate is the amount of interest due per period, as an extent of the amount lent,…
Step by step
Solved in 2 steps
- How much money would you have to deposit for five consecutive years starting one year from now if you want to be ablet o withdraw P50,000 ten years from now? Assume the interest is 14% compounded annually. Create the cashflow A. P5,298.60 C. P4,289.60 B. P3,928.60 D. P3,298.60Aaron invest P5,000 at the end of each year in an accountwhich given a nominal annual interest of 7.5%, compoundedcontinuously. Determine the total worth of this investment atthe end of 15 years.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 father is saving money 5 years before his son will be going to college. Upon opening he deposited 7,000Pesos to an account that has 4% interest compounded annually. After a year he deposited 11,000Pesos, then on the second and third year he puts 13,000Pesos and 4,000Pesos respectively. If after 5 years they withdrew the account how much would they receive? * 40,335 Pesos 34,333 Pesos 30,333 Pesos 45,345 PesosA housewife bought a brand new washing machine costing Php 15,000 if paid in cash. However, she can purchase it on installment basis to be paid within 8 years. If money is worth 8.68 % compounded annually, what is her yearly amortization if all payments are to be made at the beginning of each year? Round your answer to 2 decimal placesEmily wants to save part of her salary for a new car in a savings account that earns 8% annual interest. At the end of the first year, she saves $1000 and increases her savings by $500 each year until she buys the car at the end of year 6. How much would be accumulated in her account at the end of year 6? Round to the nearest dollar.
- Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,600 is set aside each year and invested in a savings account that pays 10% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 23 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 23. The annuity will extend from the EOY 24 to the EOY 33. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? The accumulated savings amount at the end of 23 years will be $1. If you borrow money from your friend with simple interest of 12%. Find the present worth of 20,000 which is due at the end of nine months? 2. A Loan of 10,000 is made for a period of (m) months at simple interest of 20%. If the future amount is due at the end of the load period is 4,166. Determine the (m) ? 3. The investmest made by John proved most remunerative. His 1,000,000 savings doubled at 2% per 6 months after (n) years. Determine the (n) ? 4. An investors holds a time payment purchase contact on some machine tools. The contact calls for the payments of 6,800 at the end of each month a 5 years period. The 1st payment is due in one month. He offers to sell you the contact for 330,680 cash today. If you otherwise can make 1% per month on your money, would you accept or reject the investors office?Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,600 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 23 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 23. The annuity will extend from the EOY 24 to the EOY 32. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change?
- 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. 9,435,561.091. What is the present worth of P500 deposited at the end of every 3 months for 6 years if the interest rate is 12% compounded semi-annually? 2. Determine the present value of a perpetuity of P 100,000 payable annually, with the first payment due at the end of 10 years. Money is worth 10%. 3. How much must be deposited at 6% each year beginning on January 1, year 1 in order to accumulate P5,000 on the date of the last deposit, January 1, year 6.A person needs $17122 immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union. She will be required to repay the loan in equal payments made every six months over the next 20 years starting on the second year. The annual interest rate being charged is 10% compounded continuously. What is the amount of each payment? INCLUDE THE CASH FLOW DIAGRAM OF THIS PROBLEM AND ROUND OFF INTEREST RATE TO 5 DECIMAL PLACES AND YOUR FINAL ANSWER TO 2 DECIMAL PLACES.