Answer:
The amount that will be received when CD matures is $1514.30
Explanation:
To calculate the amount that will be received at the maturity of the CD, we simply need to calculate the future value of the invested amount using annual compounding. The formula for the future value that we will use is,
Future value = Present value * (1+r)^t
Where,
- r is the rate of interest
- t is the time in years
Future value = 1275 * (1+0.035)^5
Future value = $1514.30
Answer:
a) Zero coupon bond does not pay periodical interest and formula to compute the value of a zero-coupon bond:
Value = Face Value / (1 +Yield / 2) ** Years to Maturity * 2
b) Interest deduction
After 1 year bond value from the above equation is 437.08
437.08 - 411.99 = 25.09
In the 14th year bond value from the above equation is 942.60
1000 - 942.60 = 57.40
c) Straight Line Method
Total Interest Paid = 1000 - 411.99
= 588.01
For yearly calculation
588.01 / 15 = 39.21
Further computation is done in the image below.
We might expect revenue will rise given that Phoenix is a large city.
<h3>What is a revenue?</h3>
This refers to the income generated from normal business operations which are calculated by average sales price * the number of units sold
Because Phoenix Suns decide to increase their ticket prices for next season, then, we might expect revenue will rise given that Phoenix is a large city.
Therefore, the Option B is correct.
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Because of the perceived downward sloping nature of a monopolist’s demand curve, the monopolist will charge a relatively low price at a<u> high level of output.</u>
<h3>What is demand curve?</h3>
Demand curve can be defined as a curve that help to show the relationship between the quantity of a product that is demanded and the price of the product at a specific period of time.
Hence, , the monopolist will charge a relatively low price at a high level of output based on the fact that in a situation where monopolist increases its output, he will tend to get a price.
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Answer:
The level of saving = $450 billion - $400 billion= $50 billion
Marginal propensity to save = 1- marginal propensity to consume (MPC)=0.5
Expected consumption
MPC= change in Consumption/ change in income 200 billion * 0.5 = $100billion
Therefore consumption = 100 billion + 400 billion = $500 billion
Saving = $650 billion - $500 billion= $ 150 billion
Explanation:
