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Georgia [21]
3 years ago
9

Your father is about to retire, and he wants to buy an annuity that will provide him with $78,000 of income a year for 25 years,

with the first payment coming immediately. The going rate on such annuities is 5.15%. How much would it cost him to buy the annuity today
Business
1 answer:
krok68 [10]3 years ago
6 0

Answer:

The annuity would cost him $1,082,988.93

Explanation:

To find the answer, we use the present value of an annuity formula:

P = A [(1 - (1 + i)^-n )/ i ]

Where:

  • P = Present value of the annuity (the value we are looking for)
  • A = Value of the annuity payments ($78,000 in this case)
  • i = interest rate (in this case 5.15% or 0.0515)
  • n = number of compounding periods (in this case: 25 years)

Now, we plug the amounts into the formula and solve:

P = $78,000 [(1 - (1 + 0.0515)^-25)/0.0515]

P = $1,082,988.93

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3 years ago
In a homogeneous-good Cornet model where each of the n firms has a constant marginal cost m and the market demand curve is p = a
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Answer:

Q=nq=\frac{n}{n+1}\frac{a-c}{b}

if n=1 (monopoly) we have Q^M=\frac{1}{2}\frac{a-c}{b}

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Explanation:

In the case of a homogeneous-good Cournot model we have that firm i will solve the following profit maximizing problem

Max_{q_i} \,\, \Pi_i=(a-b(\sum_{i=1}^n q_i)-m)q_i

from the FPC we have that

a-b\sum_{i=1}^n q_i -m -b q_i=0

q_i=\frac{a-b \sum_{i=2}^n q_i-m}{2b}

since all firms are homogeneous this means that q_i=q \forall i

then q=\frac{a-b (n-1) q-m}{2b}=\frac{a-m}{(n+1)b}

the industry output is then

Q=nq=\frac{n}{n+1}\frac{a-c}{b}

if n=1 (monopoly) we have Q^M=\frac{1}{2}\frac{a-c}{b}

if n goes to infinity (approaching competitive level), we get the competition quantity that would be Q^c=\frac{a-c}{b}

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A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month.
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Answer:

a. 1.51 containers

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Explanation:

The computations are shown below:

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b. If the system improves, the fewer containers are required i.e 2 containers approximate because inefficiency factor got decreased

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3 years ago
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Answer:

The correct answer is All of the options are true.

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_____________ architecture utilizes processes of designing, construction, operation, maintenance, and removal that have been car
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Answer:

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8 0
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