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STALIN [3.7K]
3 years ago
11

Suppose you inherited $275,000 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20

years
Business
1 answer:
Diano4ka-milaya [45]3 years ago
6 0

Answer:

$28,533.5

Explanation:

Principal value (PV) = $275,000

Time = 20 years

Rate = 8.25%

Present Value = P ((1-(1+R)^-n) / r)

275,000 = P ((1- (1 + 0.0825)^-20) /.0825)

275,000 x .0825 = P (1-(1/1.0825)^20)

22687.5 = P ((1.0825^20 - 1) / (1.0825 ^20))

22687.50 = P (4.8816 - 1 / 4.8816)

22687.5 = P (3.886 / 4.8816)

22687.5 = p(0.7951)

P = 22687.5 / 0.7951

P = $28533.5

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<em>The solution is explained in the explanation section below</em>

Explanation:

Solution:

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<em>The demand curve is seen as elastic in a perfect form, due to the fact that there are only 10 risky jobs.</em>

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<em>(b) The worker's altitude towards taking risky jobs has changed, because of the advertisement. the wage reservation is -10$ for the first worker and -$9 for the second worker.</em>

<em>Th jobs seen as risky is available are only 10</em>

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2 years ago
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3 years ago
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