Answer:
The future value of a 18-year annuity of $2,000 per period where payments come at the beginning of each period is $59,078.
Explanation:
We apply the formula to calculate future value of annuity to find the future value of 18-year annuity as at the beginning of year 18 ( because payment comes at the beginning of the year):
2,000/5% x (1.05^18 -1) = $56,264.77.
We further compound the future value of 18-year annuity as at the beginning of year 18 for one period to come up with the future value of this annuity as at the end of 18 year time:
56,264.77 x 1.05 = $59,078.
So, the answer is $59,078.
Answer:
to provide honest and realistic recommendations and conclusions in the execution of one's duties
to comply with enforced laws,
Explanation:
Answer: $9,226
Explanation;
The consumption function is;
Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)
Marginal Propensity to Consume;
=Increase in consumption expenditure/ Increase in Disposable income
= 680/1,000
= 0.68
Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)
= 1,610 + ( 0.68 * 11,200)
= $9,226
Private owners' primary aim in capitalism is money creation.
A system of economics referred to as "capitalism" is one that promotes private ownership of the tools of creation, distribution, and exchange in order to generate profit. In this system, the market decides the production and pricing of the goods and services, hence supply and demand dynamics are very important.
An economic system known as capitalism is one in which private individuals own and manage the trade and industries of the economy in order to profit.
What is Capitalism:
Capitalism, which includes both the working class and the capitalist class, supports class differentiation, there is a significant gap between the rich and the poor. On the other hand, communism is opposed to class inequalities in society since it supports a society in which there is no distinction among the rich and the poor.
In a capitalist society, everyone is responsible for generating their own wealth. Contrarily, in communism, wealth is dispersed in accordance with needs and capacity. While there is intense competition between businesses in capitalism, this is not the case in communism, because the government controls the market. While capitalism exists in western nations, socialism is more prevalent in eastern nations.
Learn more about Capitalism:
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Answer:
$100
Explanation:
Insurance coverage is the sum of expenses paid and the premium paid on these expenses.Total coverage is the calculated by adding the premium and expense. In this question premium is the $75 and the expense ratio is 25%.
As we know
Coverage = Premium + Expense
Coverage = 75% + 25%
So, based on above equation we can calculated the expense as follow
Expense = $75 x 25% / 75% = $25
Coverage = $75 + $25 = $1,00
