1. Consider a wine dealer who has k bottles of wine. The dealer can sell them now (t = 0) or can store it for some time and then sell them later. The value of k bottles at t-th month is given by: Vt = ket The dealer can use the sales revenue as principal in a risk-free investment at rate r. (a) If the dealer sells them now, what is the sales revenue?
Q: For the cash flows shown in the diagram, determine the value of x and 2x that will make the future…
A: The formula for the future value is given as: => F = P(1+R)t Where F : future valueP : present…
Q: 02. Quantity supplied at price = $10 is O a) 8 O b) 10 O c) 12 O d) 16 O e) 20
A: Quantity supplied means the quantity of goods and services that a seller/ producer is willing to…
Q: Question 11 Which of the following is NOT a property of indifference curves? A) Indifference Curves…
A: An indifference bend shows a mix of two goods in different quantities that gives equal satisfaction…
Q: Suppose that a firm is producing in the short run with output given by: Q=250L-15L², The firm hires…
A: Given information: Q = 250L - 15L2 Where Q is quantity and L is labor ------------ The firm hires…
Q: Figure 1 The production possibility frontier ABCDE is a production possibility frontier. It shows…
A: The Production Prospects Frontier (PPF) is a chart that shows every one of the various mixes of…
Q: 1. Suppose a utility function is given by u(x₁, x2) = 2√√x₁ + 4x₂. (a) Specify the equation of the…
A: Utility function: u(x1,x2)=2x1+4x2 ...... (1) The optimal consumption bundle is (9,4) and…
Q: With the news that the construction industry is on the rise again in the U.S., the major car…
A: The answer to the question is as follows:
Q: QUESTION 20 f(x) = (3x-4) 4. What is f'(x) at x=2? QUESTION 21 f(x) = x-1 x+1 What is f'(x) at x=1?
A: To find out f’(x) of a function, differentiate the function with respect to x taking other variables…
Q: 1. In Eng Eco, we will be introduced to the cash-flow diagrams that represents how ______ earns…
A: 1) Time-value of money refers to a concept that an amount of money that will be received at some…
Q: How is GDP affected by the nominal and effective interest rate
A: GDP refers to the total monetary value or market value of all the finished Products and services…
Q: The following graph shows the market for croissants in Philadelphia, where there are over 1,000…
A: Given:
Q: The table to the right shows the distribution of the population aged Suppose that among the 17.0…
A: The natural rate of unemployment is the bare minimum of unemployment that a strong and expanding…
Q: F2
A: We know that Purchasing Power Parity is an economic concept that helps in comparing the currencies…
Q: If average total costs are minimized for a single, unique quantity of output, then industry. If…
A: Market structures comprise any of the several market features that govern how sellers interact to…
Q: Suppose that there are two countries, X and Y, which differ in both their rates of investment and…
A: The steady state level is reached where the per capita variables such output per capita, capital…
Q: A recent trend in health insurance is the Health Savings Account (HSA). The idea behind Health…
A: Demand for healthcare refers to the level of consumption of healthcare by an individual in case of…
Q: Barriers to entry exist for perfectly competitive firms. restrict the entry of new firms into the…
A: Trade barriers are one of the most important factor which differentiates perfect competition and…
Q: Question 6 Recall that the MRS at a consumption bundle (x₁, x2) is defined as negative the slope of…
A: MRS is the marginal rate of substitution which is the rate at which one good is substituted for…
Q: Suppose that annual income from a rental property is expected to start at$1,100 per year and…
A: Given that; Annual income from the rental property is expected to start at $1,100 per year and…
Q: 28 24 20 16 12 8 4 0 P 0 4 8 12 16 20 S1 04. The minimum that suppliers will accept for the 12-th…
A: supply bend, in economics matters, realistic portrayal of the connection between item cost and…
Q: Suppose an economy produces steel, wheat, and oil. The steel industry produces $80,000 in rev- enue,…
A: GDP or Gross Domestic Product is defined as the value of final goods and services, which is bought…
Q: A) Can the government tax its own agencies or instrumentalities? Explain.
A: No. Most state agencies and local government entities in most cases are exempt from paying taxes.…
Q: The price of peanut butter, a complement to jelly, decreases. How will this affect the equi price…
A: Demand shows inverse relationship between price and quantity demanded. It slopes downward. Supply…
Q: Will the rise of AV technologies create some jobs? What are possible AV-related new jobs?
A: Yes, the rise of AV technologies is likely to create new jobs in a variety of industries. For…
Q: You deposited P200,000 at BPI with an interest rate of 4% compounded semi-annually. What is the…
A: P200,000 x (1+(4%/2))11 = P269,512.20 Your money will be worth P269,512.20 after 5 years and 6…
Q: 2.5 The only variable input a janitorial service firm uses to clean offices is workers who are paid…
A: The cost that varies per unit of output is known as a variable cost, as the name suggests. The…
Q: How does self interest affect societal interest?
A:
Q: Goal 10: Reduced Inequalities. Income inequality is on the rise the richest 10 percent have up to 40…
A: We are aware of the significant difficulties we confront in the modern world, including the pressing…
Q: Conditions Board Setup - Random Rule Changes - None Unequal Start Conditions - Yes Assigned Groups -…
A: The unequal start conditions had a significant impact on the Catan game. The most notable difference…
Q: QUESTION 13 Which statement best describes the increases of real consumption of goods and services?…
A: Real consumption can be explained and defined as nothing more and nothing less Solution: option-d…
Q: A consumer of two goods has indirect utility v(p, w) = P₁ 1/2 + P₂ (a) Find the indirect…
A: An indirect utility function is the utility or satisfaction that a customer derives from a product…
Q: produce a discussion paper for a group exercise with other candidates which analyses the…
A: The cultural and regulatory diversity of international markets can present both challenges and…
Q: To secure a return of 4%, at what price should a bond be purchased if it is redeemable at P 1,000 in…
A: So, to secure the return of 4%, at what price should a bond be purchased if it is redeemable at P…
Q: J09
A: We know that Great skill entrepreneurs have the power to alter the manner we tend to live and work,…
Q: Consider an individual agent who maximizes S [₁³U(C..) [4] Ct+s max Et (1 where Ct+s denotes…
A: Given model is 2 period model U=maxEt ∑0s(u(Ct)+δsU(Ct+s)|it t--- current period Ct--- consumption…
Q: A manufacturer has a steady annual demand for 11,520 cases of sugar. It costs $5 to store 1 case for…
A: Annual demand = 11,520 cases of sugar costs $5 to store 1 case for 1 year $ 32 set up cost to…
Q: Describe the business environment in the city or country that you live in. You should explain…
A: Private and public sector businesses coexist in India's commercial environment, where the average…
Q: Write a paper using the following headlines: Describe what panel data is and the reasons for using…
A:
Q: An economy is productively efficient whenever it is producing the maximum output with given…
A: According to microeconomics theory, the production possibility frontier is the curve that shows the…
Q: In 2004 the change in business inventories is -$50 billion and GDP is $160 billion. Final sales in…
A: Gross domestic product (Gross domestic product) is the all out financial or market worth of the…
Q: According to W. Gillepse, "A minimum of expenses is of course, highly desirable; but the road which…
A: According to W. Gillepse, the cheapest route is not always the one that has cost the least amount of…
Q: PProblem 3-Page (174): The following table gives you information on the total cost of Mac's ice…
A: Here, the given table gives information about total cost of Mac's ice-cream production using which…
Q: It would be efficient and possible for this economy to produce? dryers A) 60 dryers and 50 washers.…
A: The given curve in the graph is production possibilities frontier that shows different combinations…
Q: Ellen is downloading labor market data for the most recent month, but her connection is slow. So far…
A: Given that,Unemployment rate = 5.2%Participation rate = 62.5%Not in labor force = 60 million
Q: Do you think the rise of AVs will eliminate some jobs? What are those jobs?
A: It is possible that the rise of AVs will eliminate some jobs, such as taxi drivers, truck drivers,…
Q: 12 8 4 0 ▬▬▬▬▬▬▬▬▬▬ M 0 4 8 12 U D1 16 20 07. If supply changes from S2 to S1 and demand stays…
A: We are given that the supply curve have changed from S2 to S1 but the demand curve stays constant at…
Q: 17. The table sets out the supply schedule of jeans. Price (dollars per pair) 120 125 130 135…
A: Price elasticity of supply refers to the sensitiveness in quantity supplied due to change in price.…
Q: Evaluate a combined cycle power plant on the basis of the Present Worth Method (PW) when MARR is 12…
A: Investment Cost = 12,693 Salvage Value = 3,000 Annual Operating Cost = 1000 Overhaul Cost (end of…
Q: You will deposit 11.922 at 10% compound interest for 6 years, and then move the amount you would…
A: Let's divide this question into two continuous plans 1st plan with a 10% compound interest rate, 2nd…
Q: Miho invested $5000 in a bank that pays an annual interest rate of 9% compounded continuously. What…
A: Invested amount = $5000 Annual interest rate = 9% Total time period = 15 years
Step by step
Solved in 2 steps
- 1. Consider a wine dealer who has k bottles of wine. The dealer can sell them now (t = 0) or can store it for some time and then sell them later. The value of k bottles at t-th month is given by: Vt = ket The dealer can use the sales revenue as principal in a risk-free investment at rate r. (b) Write out the present value PV, of k bottles at t-th month.Find the amount needs to be invested if the investors want to receive an annual net income worth 5,400,000 for 7 years. Use the Hoskold's Formula to compute the priceif the money is worth 8% on sinking fund and the yield of interest is 5%. Price =An annuity-due has 26 payments of $200 per period. The effective rate of interest per period is 8% for the first 12 periods and 4% for the following 14 periods. (A) Find the accumulated value of the annuity using the portfolio method. Round your answer to 2 decimal places. (B) Find the accumulated value of the annuity using the yield-curve method.. Round your answer to 2 decimal places.
- 2. An investor has a principal amount of $P. If he Interest Rate per Year desires a payout (return) of 0.1P each year, how many years will it take to deplete an account that earns 8% 4% 6% 8% 10% Payout per Year 10% (% of principal) 20% 30% 20.9 per year? 0.1P = P(A/P, 8%, N), so N ~= 21 years. A payout duration table can be constructed for select payout percentages and compound interest rates. Complete the following table. (Note: table entries are years.) Summarize your conclusions about the pattern observed in the table. (5.5)Mr. Prudent has purchased a discount bond, that matures in 7 years with a payout of exactly $14,440. Assume that Mr. Prudent holds this bond for 3 years and then sells it in a secondary market. If the interest rate is 9.3%, then what price does he sell it for?7 Find the amount needs to be invested if the investors want to receive an annual net income worth 5,400,000 for 7 years. Use the Hoskold's Formula to compute the priceif the money is worth 8% on sinking fund and the yield of interest is 5%.Price =
- 5 Question Let Y be the present value of an 11-year term continuous annuity of $1 per year for an insured aged.x. Let х,п Y be the present value of a whole life continuous annuity of $1 per year for an insured aged.x. Given a constant force of interest, 8, show that: ()]))/(bYou are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last quarter. The fund started the quarter on January 1 with a balance of $100 million. Mighty Fine Mutual Pund Monthly Data (measured at end of month) February -4.3 6.20 March January 5.5 Net inflows ($ million) HPR () -4.30 1.80 Required: a. Calculate the quarterly arithmetic average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Arithmetic average 1.23 % b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Geometric average 1.14 % c. Calculate the quarterly dollar-weighted average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Dollar-weighted average return14. When you complete your MBA, you will treat yourself to a new car. The car you want to buy costs $25,000 and you have enough to put 20% down in cash. You can take out a loan for the rest of the cost of the car. Calculate your monthly car payments assuming the auto finance department states that the annual interest rate on the car loan is 8% and you pay the loan over a 3-year period.
- bond valuation An investor has two nonds in her portfolio, bond C and bond Z. each bond maturres in 4 years has a face value of 1000, and has a yield to maturity of 9.6% bond C pays a 10% annual coupon, while bond Z is a zeo coupon bond . b- assuming that the yield to maturity of each bond remains at9.6% over the next 4 years, calculate the price of the bonds at each of the following years to maturity year 4,3,2,1,0 b- plot the time path of price for each bondAt age 28 you invest P 25,000 into a mutual fund. If the fund averages a 7% annual return, your investment is worth how much at age 60? a. P 1, 266, 221 b. P 1, 448, 661 c. P 217, 882 d. P 190, 306Show complete solution (please write eligibly) 1. Find the uniform annual amount that is equivalent to a uniform gradient series in which the first year’s payment is $500, the second year’s payment is $600, the third year’s payment is $700, and so on, and there are a total of 22 payments. The annual interest rate is 11%. Round answer to 2 decimal places. Use any of the following formula to solve the problem