The amount of money that I would have in the bank account at the end of one year is $1,100.
The real interest rate I would expect to earn on the deposit is 6%.
If I am saving for a gaming computer, at the end of next year I would have enough money.
<h3>What is the value of the money by next year?</h3>
The formula that can be used to determine the money in my bank account next year is:
FV = P (1 + r)^n
Where:
FV = Future value
P = Present value
R = interest rate
N = number of years
1000 x (1.1)^1 = $1,100
<h3>What is the real interest rate?</h3>
The real interest rate is the nominal interest rate less inflation rate.
The real interest rate = 10% - 4% = 6%
To learn more about future value, please check: brainly.com/question/18760477
Answer:
above $3.00
Explanation:
A price ceiling is when the government or an agency of the government sets the maximum price for a good or service. A price ceiling is non binding if it set above equilibrium price. So price above $3 is non binding. A non binding price ceiling has no effect on the market price.
Price ceiling is binding if it is set below equilibrium price.
Equilibrium price is where the demand and supply curve intersects.
I hope my answer helps you
Answer:
Projects A,B,C,D and E should be accepted
Explanation:
Based on the fact that each of the itemized projects has the same of level of risk as the company's existing assets, we suggest that the firm undertake those projects that gives a return rate which is above the current weighted average cost of capital of 10.5%
In essence,projects A,B,C,D and E should be accepted as they 12%,11.5%,11.2%,11% and 10.7% returns on investment respectively.
Projects F& G would be rejected on the premise that their rates of return are lower than what is currently obtainable in Midwest Water Works.
You didn't put all the alternatives, but I understand economics and I know exactly that concept.
Supply price elasticity measures how price changes impact the supply of goods and services. If the elasticity of supply is elastic, it means that supply is very sensitive to price changes. If the price goes down even slightly, the supply of goods will fall sharply. If the price increases, even if little, the offer will increase much. Conversely, if supply is inelastic, price changes will have little effect on supply for the good. If the price goes down, there will be little impact on the supply of the good. If the price increases, there will also be little impact on supply.
