Answer:
Instructions are below.
Explanation:
Giving the following information:
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.
To calculate the present value, first, we need to determine the final value.
i= 0.09/12= 0.0075
n= 30*12= 360
<u>Martha:</u>
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= montlhy payment
FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}
FV= 366,148.70 + 2,746.12
FV= 368,894.82
Now, the present value:
PV= FV/ (1+i)^n
PV= 368,894.82/ 1.0075^360
PV= $25,042.80
<u>Stewart:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly payment
FV= {200*[(1.0075^360)-1]}/0.0075
FV= 366,148.70
PV= 366,148.70/1.0075^360
PV= $24,856.37
Martha has a higher present value because the interest gest compounded for one more time.
Specialization in production will increase output.
As any specialization in production will be achieved by specialized labor or technology, both the factor will produce per unit time and gives a comparative advantage.
Specialization is a production method that focuses on the production of a limited range of goods for a company to achieve a higher level of efficiency.
The more they focus on their work, the more efficient they are in that work. This means less time and money is spent producing goods. In other words, you can produce more goods in the same amount of time and money.
Learn more about Specialization in production here:brainly.com/question/24448534
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Answer: $79.30
Explanation:
Cost of the house = $96400
Down payment = 25% × $96400 = $24100
Mortgage = $96400 - $24100 = $72300
Interest = 5.5%
Time = 5 years
Monthly payment.= $410.66
The interest for first payment will be:
= $72300 × 5.5% × 1/12
= $72300 × 0.055 × 0.08333
= $331.36
Therefore, the amount of the first monthly payment is used to reduce the principal will be:
= $410.66 - $331.36
= $79.30
<span>What
you give up for taking some action is called the opportunity cost.
Average total cost is falling when
marginal cost is below it and rising when marginal cost is above it.
A cost that does not depend on the quantity produced is a fixed cost.
In the
ice-cream industry in the short run, variable cost includes the cost of cream and
sugar but not the cost of the factory.
Profits equal total revenue minus
total cost.
The cost of producing an extra unit of output is the marginal cost.</span>
