Answer:
A.- we need to fund 1,000,000 to achieve a 50,000 dollar perpetuity.
B.- There will be 1,105 dolalrs after 10 years.
Explanation:
Formula for perpetuity:
annuity/rate = principal
50,000/0.05 = 1,000,000
we need to fund 1,000,000 to achieve a 50,000 dollar perpetuity.
B.- continuous interest formula:
we plug our values:
we deposit 1,000 dollar for 10 years at 1% rate
And now we solve:
Amount = 1,105.170918 = 1,105
<span>Generally speaking, risk and rate-of-return are directly related. As the risk level of an investment increases, the potential return usually increases as well. The pyramid of investment risk illustrates the risk and return associated with various types of investment options. As investors move up the pyramid, they incur a greater risk of loss of principal along with the potential for higher returns.</span>
Answer: c. the output effect and the discount effect.
Explanation:
The output effect is how firms with market power control their production in honest to make profit.
A firm with market farm will have to reduce it's marginal revenue curve to increase sales.
The marginal revenue will therefore be below the Demand curve to show that the marginal revenue has to be reduced for a team to sell more goods.
The answer is Letter D <span>- do continuous research on demographic changes.</span>
The cause of his loss was because of the two drugstores and a hospital closed. In order to gain and prevent this from happening in the future, he should continually do a research on the demographics of his area. Through knowing the different changes in the demographic factors, he can plan his way through for his business to survive.