Answer:
0.087 = 8.7%
Explanation:
Present value of perpetuity given that payment is done at the end of N-year
= present value * ( 1 + i )^n-1
= 169 * ( 1 + i )^n-1 = 100 / i
∴ ( 1 + i )^n-1 = 100 / 169i ------- ( 1 )
Given that first payment at the end of N years = 2112.50 hence the present value of 2112.50
= 2112.50( 1 + i )^n-1 = 100 / i + 100/ i^2 --- ( 2 )
(given that the increment is with a difference of 100 ) and N-1 = number of years
next step : Input equation 1 into equation 2
2112.50 i^2 = 169i [ 100i + 100 ]
19350 i^2 = 16900i
∴ i = 16900 / 19350 = 0.086956 ≈ 0.087
$600. You multiply the $50 she saves a month by 12 and that’s how much she saves in a year
Possession of an open container of alcohol receives a $500 fine and a jail confinement of six day
Answer:
Iggy Wiggy T-shirts should order 6,829 units of T-shirt
Explanation:
Cost per T-shirt = $8.00
Selling Price per T-shirt = $25
Marginal Profit = 25 - 8 = $17
Marginal Loss when t-shirt is sold for $5 = $8 - $5 = $3
Mean = 6000 units
Standard deviation = 800 units
Using the News Vendor Model
Q = MP / MP + ML
Q = 17 / (17+3)
Q = 17 / 20
Q = 0.85
Using NORMINV in Ms excel
= NORMINV (probability, mean, standard deviation)
= NORMINV(0.85,6000,800)
= 6829.14 units
Thus, Iggy Wiggy T-shirts should order 6829 units of T-shirt.
