Differentiate between economic growth and economic development ?

The Canadian government decided to issue a consol (a bond with a never-ending interest payment and no maturity date). The bond w

zhenek [66]

Answer:

present value of perpetuity = $1111.11

present value of perpetuity = $588.23

if interest rate fall price go up and interest rate rise price go down

Explanation:

given data

bond pay = $50

solution

first we find present value of perpetuity for 6.5 % that is

present value of perpetuity = $\frac{cash flow}{discount}$ ..............1

present value of perpetuity = $\frac{50}{0.065}$

present value of perpetuity = $769.23

now present value of perpetuity for 4.5%

so from equation 1 we get

present value of perpetuity = $\frac{50}{0.045}$

present value of perpetuity = $1111.11

and

now present value of perpetuity for 8.5%

so from equation 1 we get

present value of perpetuity = $\frac{50}{0.085}$

present value of perpetuity = $588.23

so

here we know that current price of perpetuity & discount rate is inversely proportional

so current present value is find by divide cash flow by discount rate

here discount rate higher value of perpetuity

so if interest rate fall price go up and interest rate rise price go down

4 0

3 years ago

The yield on a taxable money market mutual fund earning 3.0 percent is equivalent to a ____ percent yield on a tax-exempt money

Nezavi [6.7K]

<span>In order to calculate the yield after taxes to compare it to a tax-exempt money market fund we will need to subtract the taxes from the yield. The yield is 0.03 and taxes on that are 0.28. If you multiply those two you get 0.0084. If you subtract this from 0.03 you get 0.0216 which is equal to 2.16%.</span>

7 0

3 years ago

Catamount Inc. employs one worker to load packages on an outgoing truck. The work shift is an 8 hour day. Trucks arrive at the l

DerKrebs [107]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

a).Work shift per day = 8 hours

Average of arriving trucks = 40

Loading time of workers = 8 min.

Earning of truck drivers = $20

Earning of workers = $18

If the truck drivers are engaged for one station, the cost may be focused on truck drivers in the system at a certain point. But if it's not, then the cost in the line must be dependent on truck drivers, since that's the best approximation of scope.

b). Hourly Cost for this System =Truck Driver Cost × No. of Trucks in an Hour + Worker Hourly Cost

= $20 × (60 ÷ 8) + $18

= $20 × 7.5+ $18

= $168

c). If they add additional dock. Then Their Total Cost in an hours

= $168 ×2

= $336 (because both worker take similar time so simultaneously 2 truck can be loaded)

If the cost doubles, the average no. of trucks service doubled too along with the ability of company to send out delivered trucks. So option 2 is better.

3 0

4 years ago

A sportswear manufacturer is introducing a new line of sneakers. To introduce the new line, the company must pay out a fixed cos

Maurinko [17]

Answer:

Total revenue at breakeven is $1,508,042

Explanation:

Breakeven point in units = Fixed cost / Selling price -Variable cost per unit

Breakeven point in sales revenue = Fixed cost / (Selling price* x)- (Variable cost per unit * x)

In this case,

Fixed cost= $1.5 million

Selling price =$75

Variable cost per unit =40 cents

Breakeven point in units = 1,500,000 million/ 75 -0.4

Breakeven point in units = 20,107

Breakeven point in units sales = 20,107 * 75

Breakeven point in units sales = $1,508,042

8 0

3 years ago

In the short run, the quantity of output that firms supply can deviate from the natural rate of output if the actual price level

Iteru [2.4K]

Answer:

1. Rise

2. Reducing

3. Fall below

4. Rises above

Explanation:

1. Sales from catalogues will fall because people will demand less as a result of the catalogue price being higher than the actual price.

2. As the rules of Supply and Demand opine, the Catalogue companies will have to reduce supply in response to a decrease in demand.

3. The natural output quantity will be more than the output supplied. have attached a graph and a table to show an example using the figures.

4. The short-run quantity of output supplied by firms will rise above the natural rate of output when the actual price level rises above the price level that people expected as shown by the graph.

6 0

3 years ago

Differentiate between economic growth and economic development ?​

Differentiate between economic growth and economic development ?