Answer:
PMT = $95,000
Rate = 4%
Life = 8 years
a. Amount to be deposited today
= PV(Rate, N, -PMT)
= PV(4%, 8, -95,000)
= $639,610.76
b. Amount in account after 3rd withdrawal
= PV(Rate, N, -PMT)
= PV(4%, 5, -95,000)
= $422,913.12
c. Balance in account after 8th withdrawal
= = PV(Rate, N, -PMT)
= PV(4%, 0, -95,000)
= $0
d. How much would you have at the end of 8 years?
= FV(4%, 8, -639610.76)
= $875,351.49
Answer:
b. 6 units
Explanation:
Output Revenue Costs = Profit ( Revenue - Costs)
0 0 10 = -10
1 8 12 = -4
2 16 15 = 1
3 24 19 = 5
4 32 24 = 8
5 40 30 = 10
6 48 37 = 11
7 56 46 = 10
8 64 55 = 9
9 72 65 = 7
Note: The revenue is calculated by multiplying output by the market price of $8.
The firm should produce 6 units to maximize their profit which is $11.
Answer:
FV= $11,134
Explanation:
Giving the following information:
Future value= $11,134
Interest rate= 4%
Inflation rate= 4%
Number of periods= 9 years
<u>The inflation rate provokes the opposite effect of the interest rate. Therefore, if the interest rate and the inflation rate are equal, the value of money through time remains constant.</u>
FV= PV*(1+i)^n
FV= 11,134* (1+0.04-0.04)^9
FV= $11,134
Answer:
A. Entrepreneur
Explanation:
Andy Yocom is an entrepreneur, because he saw a market opportunity, took a financial risk (he had to finance the advertising in the golf course, either with his own capital, or by taking up debt), hoping to recover the investment in the near-future, and earn a profit as well.
That is what entrepreneurs do: they try to find market opportunities, set up businesses to meet take advantage of those opportunities, assuming financial risks in the process, with the hopes of earning a profit afterwards.
