Answer:
$24135.72
Explanation:
Given pmt 320, r 9% n 5 years
This amount is paid monthly s\and there are 12 months in a year
r = 9%/12 =0.75%
n = 5* 12 =60
We will use the future value of annuity
FV = pmt *[(1+r)^n - 1/r)]
= 320 *[(1+0.0075)^60-1/0.0075
=$24135.72
Answer:
Break even sales will be $2700
So option (b) will be correct option
Explanation:
We have given fixed cost = $1400
Sells per unit = $27 each
And variable cost per unit = $13 each
So contribution margin ratio 
We know that break even sales is given by
Break even sales 
So option (b) will be correct answer
Answer:
C. A risk averse investor would choose the economy in which stock returns are independent because risk can be diversified away in a large portfolio.
Explanation:
if stock prices move together, (positive correlation), the volatility of the portfolio will be higher. Higher volatility means higher risk. This is the case with the first economy.
In the second economy however, the stocks are independent of each other meaning there is zero correlation between stocks and hence the portfolio volatility will be much lesser.
As a risk-averse investor you will prefer the portfolio with lower volatility for the same expected return.
Within the context of the Ricardian model of trade, suppose that the introduction of a vaccine against a virus increases the productivity of workers in the developed world. What would you expect wages to do? fall mainly in the developing countries.
In simple interest, the interest rate is
i=(10500-9000)/9000=16.67%
In compound interest, compounded monthly,
10500=9000(1+i/12)^12
=>
APR=12(10500/9000)^(1/12)-1
=11.155%
(effective interest is still 16.67%)
