Answer:
Present value of the cash flows = $1,625,000
/1.04 + $1,685,335/1.04 + $1,975,000/1.04 + $600,000/1.04 = $5,389,337.27
You recently moved to a new apartment and signed a contract to pay monthly rent to your landlord for a year. ⇒ ANNUITY
SOE Corp. hires an average of 10 people every year and matches the contribution of each employee toward his or her retirement fund. ⇒ UNEVEN CASH FLOW (EACH EMPLOYEE'S SALARY VARIES, SO THE TOTAL EXPENSE ALSO VARIES)
Franklinia Venture Capital (FVC) invested in a budding entrepreneur's restaurant. The restaurant owner promises to pay FVC 10% of the profit each month for the next 10 years. ⇒ UNEVEN CASH FLOW (PROFITS ARE NOT IDENTICAL FORM ONE PERIOD TO ANOTHER)
You have committed to deposit $600 in a fixed interest-bearing account every quarter for four years. ⇒ ANNUITY
Answer: 0.5 making the demand for gas to be inelastic in this range.
Explanation:
The price elasticity of demand is calculated as:
= % change in quantity demanded / % change in price
= 15% / -30%
= -0.5
Based on the above calculation, we can see that the elasticity of demand equals to 0.5. Since, it is less than 1, it is said to be inelastic.
Answer:
True
Explanation:
This statement is quite reasonable that most disgruntled guests complain but this is not entirely fair as some disgruntled guests do not even complain.
A satisfied guest is one who wishes for something and sets a price for it. Sometimes guests do not complain even when one of these two is fulfilled.
Answer:
Savings and loan association
Explanation:
