Answer:
Instructions are listed below
Explanation:
Giving the following information:
Suppose you just bought an annuity with 9 annual payments of $15,400 at the current interest rate of 11 percent per year.
First, we need to determine the final value with the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Then, we can calculate the present value with the following formula:
PV= FV/(1+i)^n
A)i=11%
FV= {15400*[(1.11^9)-1]}/0.11
FV= $218,125.17
PV= 218,125.17/(1.11^9)= $85,270.53
B) i= 6%
FV= {15400*[(1.06^9)-1]}/0.06
FV= $176,966.27
PV= 176,966.27/(1.06^9)= $104,746.06
C) i= 16%
FV= $269,785.02
PV= $70,940.77
Answer:
King Arthur, right now Avalon's unemployment rate is <u>12.5%</u> but Avalon's natural rate of unemployment is 14.58%. Therefore, the Avalon economy is currently in a expansion.
Explanation:
Number of Unemployed = Labor force - Employed
Number of Unemployed = 24 - 21
Number of Unemployed = 3
The unemployment rate = (3/24)*100
The unemployment rate = 12.5%
The Natural unemployment rate = Frictional Rate + Structural unemployment Rate
The Natural unemployment rate = [(2+1.5)/24]*100
The Natural unemployment rate = (3.5/24) * 100
The Natural unemployment rate = 14.58%
From the solution, the current unemployment rate less than natural rate, thus the Avalon economy is currently in a expansion
Answer:
stimulation ; stabilization
Explanation:
Automatic stabilizers act to stimulate the economy during recessions and stabilize the economy when it becomes overheated
In cases where an organization decrease it economic activity and have major cutbacks, it is expected that employees will be laid off. Laying off may lead to an increase of unemployment rate in a certain country in which it will have bigger scale of effects in taxes, bills to pay and as especially if they have families or dependents.
