Answer:
B. $228,122.
Explanation:
Number of quarters = 3 * 4 = 12
Quarterly interest rate = 12%/4 = 3%
From the table, the correct discounting factor for the future value (FV) = 1.42576
We then have:
FV = $160,000 * 1.42576 = $228,122
Therefore, the maturity value of the CD is $228,122.
...evaluated through organising questionnaires in the organization.
The firm will exit or leave the industry as its not making any profits.
<h3><u>CALCULATION OF THE PROFITS</u></h3>
According to the Question,
The firm produces at P = MC
Where we know,
Q = 55 units
P = $4.78
ATC or Average Total Cost = 6.76
AVC or Average Valuable Cost = 3
P > AVC so the firm produces to minimize losses at the MC = P.
Profit = ( P - ATC ) × Q
=( 4.78 - 6.76 ) × 55
= - 108.9
The profit is - 108.9 dollars per minute.
As the firm in the industry is making losses ( a negative profit ) so it will exit the industry in the long run.
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Answer:
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