True or false: the lower the interest rate the lower the present balue of a set of mult

Georgina consumes only grapefruits and pineapples. Her utility function is U (x comma y )equals x to the power of 0.8 end expone

vlabodo [156]

Answer:

21

Explanation:

Given that:

The utility function U(x, y) = $x^{0.8} y^{0.2}$

The budget line income is:

105=4x +3y

The equation MRTS is:

$\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}$

where;

$MU_x(x,y) = 0.8 \times x^{0.8-1}\times y^{0.2} \\ \\ \implies 0.8 \times x^{-0.2}\times y^{0.2}$

$MU_y(x,y) = 0.2 \times x^{0.8}\times y^{0.2-1} \\ \\ \implies 0.8 \times x^{0.8}\times y^{-0.8}$

and:

$P_y= 3$

$P_x = 4$

∴

Using the equation MRTS:

$\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}$

$\dfrac{ 0.8 \times x^{-0.2}\times y^{0.2} }{0.8 \times x^{0.8}\times y^{-0.8}} = \dfrac{4}{3}$

$\dfrac{4y }{x} = \dfrac{4}{3}$

4x = 12y

x = 12y/4

x = 3y

Replacing the value of x into the budget line income, we have:

105 = 4x + 3y

105 = 4(3y) + 3y

105 = 12y + 3y

105 = 15y

y = 105/15

y = 7

Then, from x = 3y

x = 3(7)

x = 21

Thus, she will consume 21 gapefruits

5 0

2 years ago

Mary Smith took a car loan of $33,000 to pay back in 36 monthly installments at an interest rate of 18%. Compute the loan balanc

DaniilM [7]

Answer:

$13,013

Explanation:

Mary's monthly payment = principal / PV annuity factor

principal = $33,000

PV annuity factor, 1.5%, 36 periods = 27.6607

monthly payment = $33,000 / 27.6607 = $1,193.0284 ≈ $1,193.03

I prepared an amortization schedule using excel to determine the loan balance after the 24th payment = $13,013

Download pdf

3 0

3 years ago

ArbitrLikvidat [17]

Answer:

a business process

Explanation:

A business process -

It refers to the steps involved to complete a particular task or project in an organisation or company , is referred to as a business process .

It is the set of activities or task , which are followed and performed till the completion of the project .

Hence , from the given information of the question ,

The correct term is a business process .

6 0

3 years ago

Problem 1 (15 Points Total): a) (5 points) For an interest rate of 1% per quarter, determine the nominal interest rate per i) se

IgorLugansk [536]

Answer:

Nominal interest rate semi annual =2%

Nominal interest rate yearly = 4%

Nominal interest rate per 2 year = 8%

4 quarters in 1 year

Explanation:

given data

interest rate = 1%

deposit = $100 per week

interest = 6% per year

solution

when quarterly interest rate is 1%

so that here Nominal interest rate per semi annual period will be

Nominal interest rate semi annual = 1% × 2

Nominal interest rate semi annual =2%

and

Nominal interest rate per year will be

Nominal interest rate yearly = 1% × 4

Nominal interest rate yearly = 4%

and

Nominal interest rate per 2 year will be

Nominal interest rate per 2 year = 1% × 8

Nominal interest rate per 2 year = 8%

and

when Interest rate compounded quarterly is 6% per year

so here Interest period 1 year as interest will be paid annually

and Compounding period is 1 quarter is compounding quarterly

and here

Interest will be compounded 4 times in 1 interest period

so there is 4 quarters in 1 year

7 0

2 years ago

Complete the following statement with the correct answer. ___________ is a supply chain strategy which recognizes that all items

ahrayia [7]

Explanation:

supply chain types: efficient, fast, continuous-flow, agile, custom-configured, and flexible

7 0

3 years ago