Answer:
Mel
If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.
c. $1,220
Explanation:
a) Data and Calculations:
Mel's value of a cruise in nice weather = $2,000
Mel's value of a cruise in bad weather = $50
Probability of nice weather = 60%
Probability of bad weather = 40%
Expected value:
Weather Outcome Probability Expected Value
Nice weather $2,000 60% $1,200
Bad weather $50 40% $20
Total expected value of a cruise $1,220
Answer:
with the new rate we will pay in 58 months.
if there is 2% commision charge: 59.35 = 60 months
Explanation:
Currently we owe 10,000
This will be transfer to a new credit card with a rate of 6.2%
We are going to do monthly payment of 200 dollars each month
and we need to know the time it will take to pay the loan:
We use the formula for ordinary annuity and solve for time:
C $200.00
time n
rate 0.005166667 (6.2% rate divide into 12 months)
PV $10,000.0000
We arrenge the formula and solve as muhc as we can:
Now, we use logarithmics properties to solve for time:
-57.99227477 = 58 months
part B
If there is a charge of 2% then Principal = 10,000 x 102% = 10,200
we use that in the formula and solve:
-59.34880001 = 59.35 months
Answer:
Alice's consumer surplus = $5
Jeff's consumer surplus = $16
Nicole's producer surplus = $1
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of a good.
Consumer surplus = willingness to pay - price of the good
Producer surplus is the difference between the price of a good and the least price the producer is willing to accept
Producer surplus = price of the good - least price the producer is willing to accept
Alice's consumer surplus = $30 - ($35 - $10) = $5
Jeff's consumer surplus = $20 - [$16 - (0.75 x $16)] = $16
Nicole's producer surplus = $501 - $500 = $1
<h3>In the given scenario unemployment rate is 10%
</h3>
Explanation:
In the given problem,
Number of People who are working is 90,000
Number of People who are not working but looking and available is 10,000
Unemployment rate = Percentage of the total labor force that is unemployed but actively looking for employment and ready to work.
Unemployment rate = ((Unemployed people * 100) / (Total people in an economy (Working + Available for work)))
Unemployment rate = ((10000 * 100) / (90000+10000))
Unemployment rate = (1000000 / 100000)
Hence, Unemployment rate = 10%
Answer:
The amount of gain that Red Blossom recognize in the exchange is $322500 and its basis in the land it receives is $635000.
Explanation:
Red Blossom recognize the gain
= Fair market value of land – corporation basis
= $635000 - $312500
= $322500
Basis of Land = Fair market value
= $635000
$322500 gain recognized and a basis in the land of $635000
Therefore, The amount of gain that Red Blossom recognize in the exchange is $322500 and its basis in the land it receives is $635000.