Answer:
$1,000,000
Explanation:
The full question is shown below:
You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start one year from the date of your retirement. The annual interest rate is 8 percent.)
In order to receive $80,000 per year forever, one needs to save the present value of the annual cash flow using the present value formula for perpetuity as provided below:
PV of perpetuity=annual cash flow/annual interest rate
PV of perpetuity=$80,000/8%
PV of perpetuity=$1,000,000
Answer:
Option (b) $12,960
Explanation:
Data provided in the question:
Cost = $90,000
Salvage value = $3,600
Useful life = 120,000 miles
Number of miles driven in 2012 = 18,000
Number of miles driven in 2013 = 32,000
Now,
Using the straight line method of depreciation
Rate of annual depreciation = [ Cost - Salvage value ] ÷ Useful life
= [ $90,000 - $3,600 ] ÷ 120,000
= $0.72 per mile
Therefore,
The depreciation expense for 2012
= Rate of annual depreciation × Number of miles driven in 2012
= $0.72 per mile × 18,000
= $12,960
Hence,
Option (b) $12,960
Answer:
b. AgCo will sell no bushels of corn.
Explanation:
A perfectly competitive market refers to market has many buyers and sellers will all the market selling the undifferentiated product without any difference.
Some of the others attributes of a perfectly competitive market are that buyers and sellers have perfect information about the price of a good, no barriers to entry and exit, similar products are being sold, there are free entry and exit to the market, and all sellers are price takers.
All sellers are price takers implies that the price of good is determined or given by the market. Therefore, any attempt to increase the price beyond the price given by the market will result into a zero sale because the buyers will immediately switch to another seller selling at the market price which lower.
Based on the above explanation, AgCo will sell no bushels of corn because its prices at $4.10 per bushel for its corn is higher than the current market price for a bushel of corn of $4.00.
It seems that you have missed the necessary options for this question, but anyway, the correct answer for this would be PRESENT VALUE. The current value of a future sum of money is called a present value. Hope this is the answer that you are looking for. Have a great day!
Answer:
A. The money demand curve shifts to the right.
