Answer: Option D
Explanation: Annuity refers to the payments made by an individual to another at equal intervals of time. And perpetuity refers to an annuity that has no end.
Hence the correct option is D. As in first two options the amount of payment will increase. Also in the last option the payments are made forever and equally so it is a perpetual annuity.
Answer:
X = 325 cars will yield same profit in both locations
Explanation:
Location City Outskirts
Dealer Price $ $
(98 x 330) 32340 32340
Labour,Material
and Transportation Cost
($30/car x 330 cars) (9900)
( $38/car x 330 cars) (12540)
<u>Fixed Cost (6950) (4350)</u>
Profit 15,490 15450
City will yield greatest profit if monthly demand is 330 cars
Location City Outskirts
Dealer Price $ $
(98 x 430) 42,140 42,140
Labour,Material
and Transportation Cost
($30/car x 430 cars) (12900)
( $38/car x 430 cars) (16340)
<u>Fixed Cost (6950) (4350)</u>
Profit 22,290 21450
City will yield greatest profit if monthly demand is 430 cars
b)
let X be the volume of output for both sites to yield same profit
City
Dealer Price = 98X
Labour, material and transportation= 30X
Fixed cost = 6950
Profit = 98X-(30X+6950)
Outskirts
Dealer Price = 98X
Labour,Material and transportation = 38X
Fixed Cost = 4350
Profit = 98X-(38X+4350)
Both Profits are same therefore
98X-30X-6950 = 98X-38X -4350
-30X+38X = -4350+6950
-8X = 2600
X = 325 cars will yield same profit in both locations
A production possibilities frontier (PPF) that is a straight-line sloping down from left to right would suggest that: the opportunity costs of the products are constant.
<h3>What is opportunity Cost?</h3>
Opportunity cost is an amount of money or satisfaction that an individual is willing to let go.
This is done in other to choose another product with more benefits that the previous one.
It is constant when the slope moves to the right side of the graph
Therefore, A production possibilities frontier (PPF) that is a straight-line sloping down from left to right would suggest that: the opportunity costs of the products are constant.
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Answer:
R=An*i : [1-(1+i)^-n]
R=580,000*0.0525/12 : [1-(1+0.0525/12)^-360]
R=3,202.78
Monthly payments =$ 3,202.78
Explanation:
Given
Home Cost=725,000
downpayment= 20% of 725,000
An=725,000 - 0.2 *725,000
An= 580,000
t=30 yrs
n=12 (monthly)
j=5.25% (interest rate)
--> i=j/m
i=0.0525/12
-->n=m*t
n=12*30
n=360
FInd monthly pmts ( R) =?
R=An*i : [1-(1+i)^-n]
R=580,000*0.0525/12 : [1-(1+0.0525/12)^-360]
R=3,202.78