Each month a company can rent capital for $7.500 per unit and can hire workers for $2.500 each Currently me company is using 4 u
nits of capital and 6 workers to produce 10.000 unto of output the combination of capital and labor represents a cost-minimizing equilibrium Draw an isoquant/is cost diagram to illustrate the situation. a. Using we point drawing tool plot the point that represents the combination amenity used Label your point E. b. Using we line drawing toot draw me Budget constrain Label your line BC. c. Using the 3-point curved line drawing tool draw the indifference curve Label your line 'IC'
1 answer:
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Answer:
$1,610.51 (in both calculation)
Explanation:
1. Using Math formula,
We know, Future value, FV = PV ×
Given,
Present Value, PV = $1,000
Interest, i = 10% = 0.10
Number of periods, n = 5 years
Putting the values in the formula, we can get,
Future value, FV = PV ×
FV = $1,000 ×
or, FV = $1,000 × 1.61051
Therefore, FV = $1,610.51
2. Using excel formula,
See the image below:
We have to use present value as negative so that the result should be used as positive.
