Matthew currently has $2,000 in his checking account and $10,000 in a savings account. He owns a home worth $120,000 and he owes
1 answer:
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Answer:
It will require quarterly deposits of $ 171.06
Explanation:
first we need to calcualte the present value of the retirement funds
and then, we will calcualte the PTM to achieve it.
1) present value of 40,000 semiannually over 10 years descounted at 6% cuarterly
PTM 40,000 dollars
time 20 810 years x 2 payment per year)
rate 0.12 (0.06 x 2)
PV $298,777.75
Now, we calcualte which PTM generate this amount over the course of 20 years
PV $298,777.74
time 80 (20 years x 4 quarter per year)
rate 0.06
C $ 171.063
Answer:
Please check the attached images for the required demand curves
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero
If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero
in the long run, only normal profit is earned
