Cinnamon Toast Crunch cereal and Trix cereal are considered substitute goods. Because of this, one would predict that, holding a
1 answer:
You might be interested in
Answer:
0.25
Explanation:
Given :
The the non defective cars =
We will consider all the defective only. This is only because the value of the used car is $ 2000 and it is lower than the price of a good car that is $10,000. Thus only defective cars are being sold as the old cars.
For a risk neutral customer, the price that he is ready to give for the new car is the reservation price of a non defective car. It means that (the amount of $ 8000 is the value of the good car x chances of getting a good car) +( the value of the bad car x chances of getting a bad car).
Since we know that x is the fraction of all the cars sold in the market are defective, it means that the fraction of the good cars is 1 - x. Thus putting the values,
= 0.25
Thus the value of :
Solution :
a). Interest for the simple interest
= $ 100
Amount due for the simple interest = $ 1000 + $ 100
= $ 1100
Amount due for the compound interest
= $ 1102.50
Interest for the compound interest = $ 1102.50 - $ 1000
= $ 102.50
b). Interest for the simple interest
= $ 450
Amount due for the simple interest = $ 1500 + $ 450
= $ 1950
Amount due for the compound interest
= $ 2007.34
Interest for the compound interest = $ 2007.34 - $ 1500
= $ 507.34
c). Interest for the simple interest
= $ 100000
Amount due for the simple interest = $ 10000 + $ 10000
= $ 20000
Amount due for the compound interest
= $ 25937.42
Interest for the compound interest = $ 25937.42 - $ 10000
= $ 15937.42
d). Interest for the simple interest
= $ 56,2500
Amount due for the simple interest = $ 25000 + $ 56,250
= $ 81,250
Amount due for the compound interest
= $ 203,426.54
Interest for the compound interest = $ 203,426.54 - $ 25,000
= $ 178,426.54
e). Interest for the simple interest
= $ 191,000
Amount due for the simple interest = $ 47,750 + $ 191,000
= $ 238,750
Amount due for the compound interest
= $ 1,830,620.40
Interest for the compound interest = $ 1,830,620.40 - $ 47,750
= $ 1,782,870.40