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2 years ago

How much would $7,550 due in 50 years be worth today if the discount rate were 7.5%?

1 answer:

5 0

If we were to receive $7,550 in 50 years, in today's value and at a discount rate of 7.5%, it would be worth $203.

<h3>What is the present value of $7,550?</h3>

You can find this out through the formula:

= Amount / (1 + rate) ^ number of periods

Solving gives:

= 7,550 / ( 1 + 7.5%)⁵⁰

= 7,550 / 1.075⁵⁰

= $203

Find out more on present value at brainly.com/question/20813161.

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Suppose that the duopolists Carl and Simon face an inverse demand function for pumpkins of P = 400 - Q, where Q = Qs + Qc is the

Usimov [2.4K]

Answer:

the Cournot-Nash equilibrium, Simon's production is 82 units

Explanation:

The Cournot-Nash Equilibrium for Simon's production is calculated as follows:

$P = 400 - Q \\ \\ Q = Q_s + Q_c$

Reaction function of Carl is as follows:

Carl maximize profit at $HR_c = HC_c$

$TR_c = P*Q_c$

$TR_c = (400 -Q_s -Q_c)Q_c$

$TR_c = 400Q_c -Q_sQ_c -Q_c^2$

⇒ $HR_c = \delta TR_c/ \delta Q_c$

$HR_c =400 -Q_s -2 Q_c$

$C_c = 30 Q_c + Q_c^2$

⇒ $HC_c = \delta C_c/ \delta Q_c$

$HC_c =30+2Q_c$

Set $HR_c = HC_c$

$400 - Q_s - 2 Q_c = 30 - 2Q_c \\ \\ 400 - Q_s -30 = 2Q_c + 2Q_c \\\\(370 Q_s) = 4 Q_c \\ \\ Q_c = (370-Q_s)/4 \\ \\ Q_c = 92.5 - 0.25 Q_s \to Reaction \ function \ of \ Carl --- equation (1)$

Reaction function of Simon

Since Simon maximize profit at $HR_s = HC_s$

$TR_s = PQ_s \\ \\ TR_s = (400-Q_c -Q_s)Q_s \\ \\ TR_s = 400 Q_s - Q_cQ_s - Q_s^2$

$HR_s = \delta TR_s/ \delta Q_s$

$HR_s =400 - Q_c -2Q_s$

$C_s = Q_s^2$

$HC_s= \delta C_s/ \delta Q_s$

$HC_s=2Q_s$

Set $HR_s = HC_s$

$400- Q_c - 2Q_s = 2Q_s \\ \\ 400 - Q_c = 2Q_s+2Q_s \\ \\ 4Q_s = 400 - Q_c \\ \\ Q_s = (4000- Q_c)/4 \\ \\ Q_s = 100 -0.25 Q_c --- Reaction \ function \ of \ Simon \ -- equation (2)$

Substituting equation (1) into equation (2)

$Q_s =100 -0.25Q_c \\ \\ Q_s = 100 - 0.25(92.5-0.25 Q_s) \\ \\ Q_s = 100 -23.125 +0.0625Q_s \\ \\ (Q_s-0.0625Q_s) = 76.375 \\ \\ 0.9375 Q_s = 76.875 \\ \\ Q_s = 76.375/0.9375 \\ \\ Q_s = 82$

Thus; the Cournot-Nash equilibrium, Simon's production is 82 units

3 0

3 years ago

It is fairly easy to acquire loans in Arzenia as the financial intermediaries of the country receive sufficient funds in the for

puteri [66]

Answer:

d. depository institutions

Explanation:

Depository institutions include institutions such as banks, savings associations, and credit unions. They encourage money savings.They are usually insured on a federal level.

When customers save their money with this institutions, the institutions use the money to provide loan facilities to people.

4 0

4 years ago

Suppose that the quantity of money in circulation is fixed but the income velocity of money doubles. If real GDP remains at its

Shalnov [3]

Answer:

The equilibrium price level will double.

Explanation:

Suppose that the economy has a money supply of $4 billion and the income velocity of money is 8, the price level will be 4 and the real GDP is $8 billion. The formula we are using is:

Money supply x velocity = price level x real GDP

If the money supply remains the same ($4 billion), the income velocity of money is 16 (it doubles), and the real GDP is $8 billion, then the price level will be:

$4 x 16 = price level x $8

$64 = price level x $8

price level = $64 / $8 = 8

So the price level has doubled to 8.

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3 years ago

A(n) ____ is a set of guidelines for helping a firm make ethical decisions:

vazorg [7]

A code of conduct is a set of guidelines for helping a firm make ethical decisions. It <span>states the principles and expectations governing the behavior of individuals and organizations in the conduct of internal auditing. Hope this answers the question.</span>

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4 years ago

Which of the following is not a typical reason that organizations form teams?

ahrayia [7]

C) to generate ideas

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3 years ago