Answer:
Amount invested today when first withdrawal end year $201302
Amount invested today when first withdrawal immediately $217407
Explanation:
given data
Annuity = $30,000
Rate r = 8% = 0.08
time Period NPER = 10 years
solution
we get here first present value of ordinary annuity that is
Annuity(PV, NPER, r)
= $30,000
(PV,10,8%)
= 6.71008
Present value = $30,000 × 6.71008
Present value = $201302.44
and
when he invest today if the first withdrawal takes place immediately is
Present value = $30,000 × 6.71008 × 1.08
Present value = $217406.64
Answera and Explanation:
% change in quantity demanded = (600 - 300)/[(600 + 300)/2]
= 67%
Therefore, The % change in quantity demanded is 67%.
% change in price = (10 - 40)/[(40 + 10)/2]
= -120%
Therefore, The % change in price is -120%
price elasticity of demand
= % change in quantity demanded/% change in price
= 67/-120
= -0.558
Therefore, The price elasticity of demand is -0.558.
Answer:
The company's price–earnings ratio is 36.
Explanation:
Price earning ratio is the ratio of market value of share to earning per share. It shows that how much investors are willing to pay for each dollar of earning of the company.
Profit margin = Net income / sales
0.04 = Net Income / $7800
Net Income = $7800 x 0.04 = $312
Earning Per share = Net Income / number of outstanding shares
Earning Per share = $312 / 6,100 = $0.05
Price earning ratio = Market price of share / Earning per share
Price earning ratio = $1.8 / $0.05 = 36
Answer:
d. In perfect price discrimination, the firm is able to convert the entire area of consumer surplus that existed under perfect competition into producer surplus.
Explanation:
Perfect price discrimination occurs when the firm charge the <em>maximum price</em> that consumer is willing to pay <em>for every unit sold</em>.
(That price is given by the demand curve)
They will produce where the lowest price they can charge is equal to their marginal cost (marginal cost = marginal revenue), in other words where Supply curve meet Demand curve, ie. free market equilibrium (so no deadweight loss).
Their revenue will be a + b + c. That includes a, the entire consumer surplus under perfect competition.
Answer:
What happens to the wealth effect of a change in the aggregate price level as a result of this allocation of assets?
- The consumers' wealth effect will rise since the slope of the aggregate demand curve increases as the prices of assets increases, i.e. the slope of the aggregate demand curve becomes steeper as customers become wealthier.
Will aggregate demand still be downward sloping? Why or why not?
- The aggregate demand curve sill still be downward sloping because as the price of a good or service increases, the quantity demanded will still decrease. An inverse relationship exists between price changes and quantity demanded.
