Answer:
The Today's value of payment occurred for 20 years is $72,039.
Explanation:
Payment of fixed amount for a fixed period of time is called annuity. Present value of annuity will be calculated as follow
PV of annuity = P x [ ( 1- ( 1 + r )^-n ) / r ]
According to given data
P = monthly payment = $6,800 every year
r = interest rate = 7%
n = number of period = 20 years = 20 periods
PV of annuity = $6,800 x [ ( 1- ( 1 + 0.07 )^-20 ) / 0.07 ]
PV of annuity = $72,039.30
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Jamie's dissatisfaction with her current job stems from a breakdown in the performance-reward. Although Jamie is a top performer for her region, she did not receive the promotion so it hurt her because she thought she'd get it due to her excellent performance. She thought she'd get promoted based on performance but when that didn't happen, she was dissatisfied.
Answer:
A. person buys something with a marginal benefit more than what they paid.
Explanation:
Consumer surplus occurs when the price a consumer is willing to pay for a product is higher than the market price. For example if a customer is willing to pay $10 for a book, but the sale price is $8 the consumer surplus is $2.
Since the consumer perceives he paid less than the value of the good, the marginal benefit he enjoys is more than the price paid.
