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Delicious77 [7]
3 years ago
6

n the Baumol-Tobin model, if the nominal interest rate is 1%, the consumer's annual income is $36000, and every trip to the bank

costs $20, then it is optimal for the consumer to visit the bank ___ times a year. 2 3 4 5
Business
1 answer:
quester [9]3 years ago
3 0

Answer:

In the Baumol-Tobin model, if the nominal interest rate is 1%, the consumer's annual income is $36000, and every trip to the bank costs $20, then it is optimal for the consumer to visit the bank <u>three times </u>a year.

Explanation:

The optimal number of visit to banks = (iY/2F)0.5

i = 1% = 0.01

Y = $36000

F = $20.

The optimal number of visit to banks = (iY/2F)0.5

The optimal number of visit to banks = (0.01 * 36000 / 2* 20)0.5

The optimal number of visit to banks = (9)0.5

The optimal number of visits to banks = 3.  

it is optimal for the consumer to visit the bank 3 times a year.

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Answer:

See Explanation

Explanation:

Given

The histogram

Required

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The question is poorly formatted, as the histogram cannot be read. So, I will answer your question with the attached histogram

The class width is:

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What is the present value of the following series of cash flows discounted at 12 percent:
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Answer:

The present value of the following series of cash flows discounted at 12 percent is:

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Explanation:

a) Data and Calculations:

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$0                           0.797              $0

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b) The present value is the discounted cash flow from series of future cash flows.  The discount factor is applied to the individual cash flows, based on the number of years before the cash flow occurs.

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