Answer:
She need to pay $134 into the annuity each month for the annuity to have a total value of $5000 after 3 years.
Explanation:
Total value of annuity after = $5,000
Interest rate = 2.4% = 0.024 compounded annually
Number of year = 3 years
Future Value of Annuity = P [ ( ( ( 1 + r )^n)-1 ) / r ]
$5,000 = P [ ( ( ( 1 + 0.024/12 )^3x12 )-1 ) / 0.024/12 ]
$5,000 = P [ ( ( ( 1 + 0.002 )^36 )-1 ) / 0.002 ]
$5,000 = P X 37.29
P = $5,000 / 37.29
P = $134.1 = $134
<h2>The two fundamental steps are how people make choices & how resources and scarcity affect the costs and benefits of choices.</h2>
Explanation:
Let us understand the term "Economics" first.
It deals with "production, distribution and consumption" of "goods and services".
The basic steps are
People make choices by
- seeing the price of the market for any given product,
- the benefits that they get out of it,
- the postponement of buying a product based on the availability of the product
- buying products based on future demands
- understanding that the cost depends purely on the "scarcity" of the product
I would say this is an example of a sample that is in part controlled ie 10m x 10m size samples and random ie by which plots to use for the sample. The goal is to obtain a representative sample so as long as the random samples are spaced fairly regularly throughout the area in question, then it should be reasonably representative.
Answer:
Net Present Value (NPV) is 506
Explanation:
See document attached. To get the net present value, we make a cash flow in excel.
At moment 0 we have the investment cost , in this case $13,400. From period 1 to period 4, we have different incomes. Then, we calculate the Net cash flow that is the difference between benefits and cost.
To get net present value, we use VNA formula.
=VNA(required rate of return; Net cash flow from moment 1 to moment 4 )+Net cash flow at moment 0