Answer:
Lump sum required= $80,459.07
Explanation:
Giving the following information:
Monthly deposit= $1,500
Number of months= 5*12= 60
Monthly interest rate= 0.045/12= 0.00375
First, we need to calculate the final value of the monthly deposit. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {1,500*[(1.00375^60)-1]}/ 0.00375
FV= $100,718.33
Now, we need to determine the lump sum required:
PV= FV/(1+i)^n
PV= 100,718.33/ (1.00375^60)
PV= $80,459.07
Answer:
c. A low late payment fee
Explanation:
A credit card late payment fee (late charge) is the amount charged by a bank to someone who does not pay his debt at the payment deadline. This late fees are usually about $35 or more. Late fees can be avoided by paying debt on time before the due date.
For people who do not pay their bills on time they can use credit cards that do not charge for late fee or those whose late payment fee charge is very low.
Answer:
Explanation:
In using the midpoint method to calculate price elasticity , the average percentage change in the price and quantity are used
formula = percentage change in quantity = (Q2 -Q1/(Q2+Q1)/2)*100
Percentage change in price = ( P2 -P2/(P2-P1)/2)*100
Price changes = $1.5 to $1.3
Quantity changes = 60 to 100
Percentage in price = (1.3-1.5 /(1.5+1.3)/2 )*100
(-0.2/1.4)*100 =-14.29%
Percentage in quantity = (100-60/(100+60)/2)*100
40/80*100 = 50%
Therefore , price elasticity of demand = 50/-14.29 = -3.5
With the elastic interval being less than 1 , it means that it is an inelastic demand
Answer:
d) 14.93%
Explanation:
initial outlay = -$375,000
cash flow year 1 = $315,000
cash flow year 2 = -$25,000
cash flow year 3 = $110,000
cash flow year 4 = $150,000
Since there are two cash outflows, we will have two different IRRs.
We can use an excel spreadsheet and the MIRR function to solve this:
=MIRR (-375000 to 150000, 10%, 10%) = 14.93%
unless told otherwise, we should use the discount rate as both our finance and reinvestment rate.
Cross-elasticity of demand is a) the willingness to substitute other products.
If the goods are alternative products, the cross elasticity of demand is tremendous which means that demand for one product will increase when the charge of the alternative product will increase and vice versa
If the products are complementary, go elasticity of demand is terrible which means that once the fee of 1 product will increase, demand for the opposite product decreases and vice versa.
The go-rate elasticity formulation is an equation for calculating the pass-price elasticity of call for (XED) of separate services or products: go rate elasticity (XED) = (% change in call for of product A) / (% alternate of fee of product B), wherein merchandise A and B are exceptional services.
In economics, the pass elasticity of call for or go-price elasticity of demand measures the percentage change of the quantity demanded an awesome to the percentage change in the fee of another proper, ceteris paribus.
The cross elasticity of call for is an economic concept that measures the responsiveness in the amount demanded of one good while the fee for some other correct modifications.
Learn more about Cross-elasticity here brainly.com/question/22985521
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