Answer:
You will have $16,111.99
Explanation:
a) Data and Calculations:
Annual savings $3,500
Years = 4
Interest rate = 5.7%
Future value using finance calculator:
FV (Future Value) $16,111.99
PV (Present Value) $12,907.71
N (Number of Periods) 4.000
I/Y (Interest Rate) 5.700%
PMT (Periodic Payment) $3,500.00
Starting Investment $0.00
Total Principal $14,000.00
Total Interest $2,111.99
b) Your annual savings of $3,500 with 4 deposits will have a future value of $16,111.99 compounded at 5.7% for 4 years with a total principal of $14,000 ($3,500 * 4).
Answer:
Total Return on investment=12.678%≅12.68%
Explanation:
Given;
Number of Shares= 300
Purchasing price of each share=$32.60
Total Dividends= $280
Selling price of each share= $35.80
Find:
Total Return on investment=?
Solution:
Total Return on investment=
Total Return on investment=0.12678
In Percentage:
Total Return on investment=12.678%≅12.68%
Answer: C
Explanation:
Wealth is the gradual gathering of profits, assets or income over a period of time. It is the gradual increase in ones assets over a sustained period.
Wealth creating transactions can be found both in contract enforcement and private property rights. The prosperity and economic development of a country can be attributed to the respect accorded to its citizens property rights.
Property rights gives room for entrepreneurship which can eventually lead to wealth accumulation. Contract enforcement also generate wealth for individuals.
Answer and Explanation:
I will go through each and every option explaining the reasons and what option would be the best:
The (a) part says 'difference in wages will eventually disappear since a haircut is a homogeneous good' - This is not true because even though it is an homogeneous product, some customers do have a strong preference for barbers who are not going bald. Therefore, they know their worth and they would want to capitalize on that and get paid just a bit more than bald barbers.
The (b) part says 'barbershops that hire barbers with hair will be able to charge a higher price for a haircut to those consumers who have a strong preference for barbers with hair'. - If the barbershop charges higher price for barbers that have hair then the customers will prefer bald barbers as the questions mentions that there is high competition and since it is an homogeneous, customers would be willing to save money and get their haircut from some other barber.
The (c) part says 'barbershops that hire bald barbers will always be much more profitable' - Not necessarily. The reason is that some customers have a strong preference for barbers who are not bald and therefore, that would help barbershops who have barbers with hair to be a bit more profitable as some additional customers would want their services.
The (d) part says 'barbershops that hire barbers with hair will always be much more profitable' - This is the best option and the reason for it is because some customers have a strong preference for barbers with hair and that would help the barbershop to earn more. They would have the customers who already indifferent to whoever cuts their hair and in addition to that, they would also have the customers who have their preference.
Hence the answer is D.
