Answer:
(a) $50,980.35
(b) $5,129.90
(c) $2,400
(d) $50,980.35
(e) $5,129.90
(f) $2,400
Explanation:
A constant payment for a specified period is called annuity. The future value of the annuity can be calculated using a required rate of return.
Formula for Future value of annuity is
F = P * ([1 + I]^N - 1 )/I
P =Payment amount
I = interest rate
N = Number of periods
(a) $1,000 per year for 16 years at 14%
F = $1,000 x ([1 + 14%]^16 - 1 )/14%
F = $50,980.35
(b) $500 per year for 8 years at 7%
F = $500 x ([1 + 7%]^8 - 1 )/7%
F = $5,129.90
(c) $600 per year for 4 years at 0%.
F = $600 x 4
F = $2,400
(d) $1,000 per year for 16 years at 14%
F = $1,000 x ([1 + 14%]^16 - 1 )/14%
F = $50,980.35
(e) $500 per year for 8 years at 7%
F = $500 x ([1 + 7%]^8 - 1 )/7%
F = $5,129.90
(f) $600 per year for 4 years at 0%.
F = $600 x 4
F = $2,400
Answer:
a. 0.223
Explanation:
Calculation for the Probability that after one employee arrives, the next one will arrive at least 3 minutes
Since no one comes in 3 minutes,hence:
3minutes/60 =1/20 hours
Thus, the Probability will be calculated as:
Probability=e^20/30
Probability=0.223
Therefore the Probability that after one employee arrives, the next one will arrive at least 3 minutes will be 0.223
Answer:
$1,395
Explanation:
Total cost of Inventory purchased
= (No. of units × Per unit price) + (No. of units × Per unit price) + (No. of units × Per unit price)
= (240 × 8) +(340 × 10) +(440 × 11)
= 1,920 + 3,400 + 4,840
= $10,160
Number of units purchased = 240 + 340 + 440
= 1,020
Average cost per unit = total cost /No. of units
= 10,160 /1,020
= $ 9.9608 per unit
Cost of ending inventory = 140 × 9.9608
= $1,395
Answer:
2. An outward shift of the production possibilities curve.
Explanation:
Economic growth can be defined as an increase in the output of goods produced in an economy or increase in what an economy produces using its scarce resources.
Simply put it is an increase in production capacity.
The production possibility curve shows all possible combinations of two products that can be produced with a given level of resources.
When there is increase in capacity there is increase in number of goods that can be produced. For example if resources of 50 units can produce 15 units of A and 20 units of B. An increase of resources to 70 units will be able to produce more let's say 20 units of A and 23 units of B.
This results in shift of PPP outward as illustrated in the attached diagram.
