Answer:
Explanation:
Using future annuity formula
Fv = Pmt ( (1+r)ⁿ -1 )/ r
+ 1 = (1+r)ⁿ
In ( + 1) = n In ( 1+r)
n = In ( + 1) / In ( 1 + r)
FV, future value = $10,000, Pmt, periodic payment per year = $1,100, r rate = 11.82% = 0.1182 and n = number of years
n = 0.7297 / 0.11172 = 6.53 years approx 7 years
the last year payment will actually be less than $1,100
Answer:C. Real interest rates expected by British investors are 2 percentage points higher than the real interest rate expected by US investor.
Explanation:
The real interest rate is the market interest rate less the inflation rate.
The inflation rate always reduce the purchasing power of money which is the real measure of the purchasing power of money and not the money face value.
Answer:
2 Days
Explanation:
First, there is the need to rewrite the utility function for clarity
U=V^{1/2}
1. The Probability of Falling ill by someone in the family is given as 20%
2. If someone should fall ill, the total number of days that would be spoiled is calculated as:
Total number of vacation= 10 days x Probability to fall ill = 20%
= 10 x 0.2 = 2 days
This means if someone should fall ill based on the probability, then 2 out of the total 10 days can be ruined
3. The number of days for vacation days to enjoy is 10-2 = 8 days
This means if the family gives up 2 days of probable illness, they can still enjoy their vacation.
V= 2 days
Answer:
A.$2.99
B.$1.15
Explanation:
Frantic Fast Foods
A.Computation of the earnings per share for the year 20X
Using this formula
Earnings per Share=Earnings after Taxes/Shares Outstanding
Let plug in the formula
900,000/301,000
=$2.99
The earnings per share for 20X1 will be $2.99
B. Computation of the earnings per share for the year 201X
Earnings after Taxes= 301,000 * 1.28 = 385,280
Shares Outstanding=301,000 + 32,000 = 333,000
Hence,
Earnings after Taxes/Shares Outstanding
385,280 / 333,000 = $1.15
Therefore the earnings per share for 20X1 will
be $1.15 .
Cross elasticity of demand measures the responsiveness in the quantity demand of one good when a change in price takes place in another commodity or good. It is calculated by dividing the percentage change in the quantity demanded of one good by the percentage change in price of other good.
Therefore, in this case, cross elasticity of demand will be;
17%/-2% = - 8.5 (-2% because its a decrease)
Thus , the elasticity will be -8.5
