Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
C $ 3,113.036
Explanation:
First step will be calcualte the future value of the bond and stock funds:
C 1,100
time 180 ( 15 years x 12 months)
rate 0.005833333 (7% divided into 12 months)
PV $348,658.5264
C 500
time 180
rate 0.003333 (4% divided by 12 months)
PV $123,045.2441
total fund: 348,658.5264 + 123,045.2441 = 471,703,7705
Then this will be placed to yield 5% and we will do motnly withdrawals:
we need to calcualte the PTM of this annuity:
PV $471,703.77
time 240
rate 0.004166667
C $ 3,113.036
Answer:
A- Both firms will set the price at $35
Explanation:
When there is no collusion,
When Y charges $40, X's best strategy is to charge $35 since payoff is higher ($59 > $57).
When Y charges $35, X's best strategy is to charge $35 since payoff is higher ($55 > $50).
When X charges $40, Y's best strategy is to charge $35 since payoff is higher ($69 > $60).
When X charges $35, Y's best strategy is to charge $35 since payoff is higher ($58 > $59).
Therefore Nash equilibrium is: ($35, $35).
Answer:
True
Explanation:
Regressive taxes place more burden on low-income earners. Since they are flat taxes, they take a higher percentage of income on the poor than on high-income earners. Taxes on most consumer goods, sales, gas, and Social Security payroll are examples of regressive taxes.
Answer:
See below
Explanation:
Nick's goal is to pay $2500 in six months. To achieve the goal, he needs to pay at least $417 per month. As of April, and with two more months to go, the balance is only $200. This indicates that Nick has been paying more than the minimum monthly average required.
If Nick continues to repay at the current rate, he will certainly achieve his goal.
