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3 years ago

The decision making process followed by consumers to maximize utility assumes that

1 answer:

5 0

The decision-making process followed by consumers to maximize utility assumes that the consumer has a limited income, the consumer is able to rank their preferences, the consumer behaves rationally.
The term utility used by the economist as a measure of satisfaction, happiness, a joy of a person.

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ou are planning to save for retirement over the next 30 years. To do this, you will invest $890 per month in a stock account and

Romashka [77]

Answer:

Monthly withdraw= $23,294.99

Explanation:

Giving the following information:

Stock:

Monthly deposit= $890

Number of periods= 30*12= 360

Interest rate= 0.109 / 12= 0.0091

Bond:

Monthly deposit= $490

Number of periods= 30*12= 360

Interest rate= 0.069 / 12= 0.00575

First, we need to calculate the amount of money collected at the moment of retirement. We need to use the following formula on each investment:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Stock:

FV= {890*[(1.0091^360) - 1]} / 0.0091

FV= $2,452,918.1

Bond:

FV= {490*[(1.00575^360) - 1]} / 0.00575

FV= $586,123.47

Total FV= 2,452,918.1 + 586,123.47

Total FV= $3,039,041.57

Now, the monthly withdrawal for 25 years:

Number of periods= 25*12= 300

Interest rate= 0.079 / 12= 0.0066

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (3,039,041.57*0.0066) / [1 - (1.0066^-300)]

Monthly withdraw= $23,294.99

7 0

2 years ago

Dirty Don's Bicycle Shop is current financed with 100% equity. The firm currently has 100,000 shares of common stock outstanding

Stella [2.4K]

Answer:

Number of bonds to raise = 2250

Explanation:

given data

current financed = 100% equity

common stock outstanding = 100,000 shares

selling = $50 per share

debt = 45%

equity =55%

par value of a bond = $1,000

to find out

How many bonds would Don have to sell at par value

solution

we get here first the value of equity that is express as

value of equity = Number of shares × Price per share .................1

put here value

value of equity = 100,000 × $50

value of equity = $5,000,000

and

financed with bonds = 45 % of value of equity

financed with bonds = 45 % × $5,000,000

financed with bonds = $2,250,000

Number of bonds to raise is express as

Number of bonds to raise = $\frac{2,250,000}{1000}$

Number of bonds to raise = 2250

6 0

3 years ago

Cullen Company has $235,000 in credit sales, and $164,200 in its Accounts Receivable at the end of the year. The company uses th

S_A_V [24]

Answer:

Net Realizablel Value of Account receivable = $142,850

Explanation:

Particulars Amount

Total Accounts Receivable $164,200

- Pre-adjusted Uncollectable Account balance $7,250

- Current Year Uncollectable Amount $14,100 ($235000*6%)

Net Realizable Value $142,850

4 0

2 years ago

5. A garden plant that has been passed down within a food family and is generally not commercially grown is called a/an _______

madreJ [45]

Answer:

The correct option is D, Heirloom.

Explanation:

A garden Plant that has been passed down within a food family and is generally not commercially grown is called a Heirloom Product. Such garden plants are planted by the gardeners for their own and family use. Such plants are not sold commercially. Generally they are planted to be used within the house. Family members use such plants to make foods.

4 0

2 years ago

When you buy in bulk, the price per individual item .

iogann1982 [59]

Answer:

Decreases

Explanation:

The seller is willing to diminsh price if he can sell more units of anygiven product.

3 0

3 years ago