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3 years ago

When most economists wake up in the morning, their first decision is whether or not to his the snooze button on the alarm clock.

Business

1 answer:

lions [1.4K]3 years ago

3 0

Answer:

The correct answer is letter "E": The marginal benefit of sleeping 10 more minutes is greater than the marginal benefit of 10 more minutes of work.

Explanation:

Marginal Benefit is an economic term that describes the maximum amount a consumer is willing to pay for an additional unit of a good or service. Typically, the marginal benefit decreases as long as the person consumes more of that good or service. The price-benefit relationship is inversely proportional.

In the example, the marginal benefit of sleeping 10 minutes more must be greater than the marginal benefit of working 10 more minutes if economists choose to sleep a little bit more.

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Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The mark

never [62]

Answer:

The bond price is $1024.74.

Explanation:

Given,

time, t= 8 year

Maturity value, F = $1,000

interest rate, r = 6.1%

Coupon, C = $65

Bond's price = $C [ \dfrac{(1-[1+r]^{-t} )}{r} ] + \dfrac{F}{[1+r]^t}$

= $65 [ \dfrac{(1-[1+0.061]^{-8})}{0.061}] +\dfrac{1000}{[1+0.061]^8}$

= $65 [\dfrac{ (1- \dfrac{1}{1.6059})}{0.061}] + \dfrac{1000}{1.6059}$

= $65 [ \dfrac{(1 - 0.6227)}{0.061}] +\dfrac{1000}{1.6059}$

= $65\times [ 6.1852] + 622.70$

=$1024.74.

Hence, the bond price is $1024.74.

5 0

3 years ago

Allison and Leslie, who are twins, just received $50,000 each for their 21th birthdays. They both have aspirations to become mil

gizmo_the_mogwai [7]

Answer:

(a) 208.92years

(b) 188.67years

(d) It is irrational for Allison to invest in the bond fund

Explanation:

Allison and Leslie start annual contribution of $5,000 beginning a year from today (22nd birthday)

(a) Allison starts her investment at 22 in Safety First Bond Fund with returns of 7% per year

Annual total investment = 5000 + (5000 × 0.07) = 5000 + 350 = $5,350

Allison's age when she becomes a millionaire = 22 + (1,000,000/5,350) = (117,700 + 1,000,000)/5,350 = 1,117,700/5,350 = 208.92years

(b) Leslie starts her investment at 22 in New Issue Bio-Tech Fund with returns of 20% per year

Annual total investment = 5000 + (5000 × 0.2) = 5000 + 1000 = $6,000

Leslie's age when she becomes a millionaire = 22 + (1,000,000/6,000) = (132,000 + 1,000,000)/6,000 = 1,132,000/6,000 = 188.67years

Her annual contributions to become a millionaire at the same age as Leslie = 1,000,000/(188.67 - 22) = 1,000,000/166.67 = $6,000

(d) It is irrational for Allison to invest in the bond fund rather than in stock because it will take longer time to achieve her aspiration to become a millionaire

7 0

3 years ago

Which of the following types of loans is the most common instrument used to finance the acquisition of existing commercial prope

adoni [48]

Answer:

Explanation:

Fixed-rate balloon mortgage loans is a type of loans and a common instrument used to finance the acquisition of existing commercial property.

4 0

4 years ago

Helpppppppppppppppppppppppppp

Volgvan

I would say C because examining it with other evidence that was accurate would give you the idea of what you’re look for.

7 0

3 years ago

Warranty Costs Milford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on

Yanka [14]

Answer and Explanation:

The computation of the estimated liability and the journal entry is given below:

But before that following calculations need to be done

The Estimated defective units is

= 70,000 × 4%

= 2,800 units

the actual defective units is

= 460 + 350 + 210

= 1,020 units

The no of unclaimed units is

= 2,800 - 1,020

= 1,780 units

Now the warranty expense is

= 1,780 units × $60 per unit

= $106,800

Now the journal entry is given below:

Product warranty expense Dr $106,800

To Estimated liability $106,800

(Being estimated liability is recorded)

6 0

3 years ago