Answer:
e.people will not change the quantity of the good when the price of the good is changed.
Explanation:
When the demand curve for a good is vertical, it indicates that the demand for the good is perfectly inelastic ; a change in price has no effect on the quantity demanded.
Goods with perfect inelasticity usually have no or little close subsituites.
I hope my answer helps you
Answer:
withdraw amount = 28532.45
so correct option is a. $28,532
Explanation:
given data
present amount = $275,000 bonus
interest rate = 8.25% per year = 0.0825
time period = 20 year
solution
first we get here Cumulative discount factor that is
Cumulative discount factor = .........................1
here r is rate and t is time period
put here value and we will get
Cumulative discount factor =
solve it we get
Cumulative discount factor = 9.638148
and now we get so here withdraw amount at the end of each of the next 20 years that is
withdraw amount = Present amount ÷ cumulative discount factor ............2
put here value
withdraw amount =
solve it we get
withdraw amount = 28532.45
so correct option is a. $28,532