Is this a true or false question? Is it multiple choice? is it expected to be written in complete sentences as a short answer? I need more context on how to respond to the situation in the question :)
Answer:
e) Nan will have more money than Neal at any age.
Explanation:
In compound interest, the interest earned in the year is added to the principal amount at the beginning of the next year. Earned interest becomes part of the principal which makes it earn interest. Adding interest to the principal to earn more interest is known as compounding.
The longer the investment period is, the more time interest will be compounded, and the more the investment will grow. Nan made her investment at age 25. By the time she retires, her investment period will be 35 years. Neil started her investment at age 30. At any given time after they are both age 30, Nan's investment will have earned compounded interest five more times than Neil. Therefore, Nan will have more money at any given time.
Answer: Option C
Explanation: In the given case, the audience of the commercial made by Titleist have the same background and social standing. All the people watching the commercial in the given question were standing in a country club, thus, they all had a certain amount of knowledge and interest in golf and have same societal background to a very good extent.
Thus, from the above we can conclude that option C is the right answer.
Answer:
In simple words, positive externalilty refers to the phenomenon under which an etity or an individual takes advanatage of any sctions made bo some other entity. Education helps to make individual build a strong character which further results in overall development of the society.
Free university education in Texas would be good for society in terms of quality education becoming cost effective to everyone and thus everyone would be able to sign up for college degree. This would end up making university education accessible to all and improve their standard of living.
However, on the other hand, free university education might make them take things for granted, and the seriousness of education would be significantly reduced. At the very same period, it will be very costly for the state to employ a professional faculty to provide education.
Answer:
1. I grouped the costs into explicit and implicit costs below
2. accounting profit = 89000
3. economic profit = 3000
4. daniel should stay in the piano business
Explanation:
<u>explicit costs include</u>:
1. The wholesale cost for the pianos that Darnell pays the manufacturer at $452000
2. The wages and utility bills that Darnell pays at $301000
<u>the implicit costs include:</u>
1. The salary Darnell could earn if he worked as an accountant at $48000
2. The rental income Darnell could receive if he chose to rent out his showroom at $38000
<u>accounting profit</u><u>:</u>
842000-452000-301000
= 89000
<u>economic profit</u><u>:</u>
842000-452000-301000-48000-38000 = 3,000
<u>as an accountant economic profit</u><u>:</u>
48000+38000-89000
= -3000
so he should stay in the piano business so that economic profit would be maximized.
