Answer:
Present value = $45,185,606
Explanation:
Data:
number of periods(n) = 17 years
First-year profit = $5 million
Growth rate = 2%
Interest rate = 10%
Present value = ?
Solution:
The present value of the growing annuity can be calculated as follows
Formula:
Let's denote
annual interest rate = x
annual growth rate = y
Present value = First-year profit x
Present value = $5,000,000 x
Present value = $5,000,000 x 9.03
Present value = $45,185,606
The economic concept that is included in this question can be refered to as positive externality.
<h3 /><h3>What is positive externality?</h3>
This has to do with the term that denotes the benefit that a party would have due to the fact that they engaged in an activity.
In this case, a person would be more likely to get more jobs and more appeal to unterviewers because they have more skills.
Read more on positive externality here: brainly.com/question/477170
#SPJ1
Answer:
c
Explanation:
A quota occurs when the government or an agency of the government limits the quantity of goods that can be imported or exported in a country.
A quota increases the price of goods and services if the quota is enacted by the importing country. This would lead to an increase in producer surplus and a reduction in consumer surplus.
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
Producer surplus = price – least price the seller is willing to accept
The increase in price as a result of the quota would lead to an increase in the quantity of the product been supplied. This is in line with the law of supply
Answer: In insurance terms, this is the likelihood that an event (such as death or injury) will happen. Previous. Champus. Risk refers to the “chance of loss.” ... Only pure risk is insurable. A loss is an unexpected decrease in financial value. A peril is what the insurance protects against. A hazard is anything that increases the chance of a peril or the severity of a loss, should one occur.
Hope this helps........ Stay safe and have a Merry Christmas!!!!!!! :D
Explanation: