Answer:
Interest rate = 6..3%
Explanation:
<em>An investment that pays a fixed amount for life is called a perpetuity. The worth of a perpetuity today is the present value of the future cash flow. Using the present value of the perpetuity formula, we can work out the interest rate as follows:</em>
PV = A × 1/r
<em>Where PV = present value, r- Interest rate , A- annual cash flow</em>
4,400 = 275× 1/r
cross multiply
4,400 × r= 275
divided both sides by 4,400
r = 275/4400
r= 0.0625 × 100
r= 6.25%
r= 6.3%
Interest rate = 6..3%
Answer:
2) Chemotherapy for cancer patients
Explanation:
Chemotherapy for cancer patients is a basic necessity needed for the patient to continue living, so if the price of chemotherapy increases or decreases will not affect the patient's choice of getting it. What can affect the patient's decision is whether he/she can afford the treatment, but even if he/she can't they will seek other ways of trying to obtain it, e.g. going to public hospitals.
Answer:
The answer is 11.2%
Explanation:
Cost of acquisition: $16 per share
Annual dividend: $1
The stock increases by $2 every year for 3 years. Therefore, we have:
First year is $16 per share
Second year is $18 per share
Third year is $20 per share.
The arithmetic average annual capital gain will be
($2/$16 + $2/$18 + $2/$20)/3
(0.125 + 0.111 + 0.1) / 3
0.336/3
0.112
Expressed as a percentage:
= 11.2%
Answer:
All workers have equal ability and can be trained to do different types of employment at minimum cost. Workers can move from one labor market to another at zero cost. All workers must have a bachelor's degree.
Explanation:
In the conventional perfectly competitive model of the labor market, wage-setting is individualistic in the sense that identical workers should receive identical wages in different firms and different workers should receive different wages in the same firm.
