Answer:
$4,5243.63
Explanation:
Data provided in the question:
Future value = $250,000
Interest rate = 5% = 0.05
Time = 5 years
Now,
Future value =
here,
C = Regular deposit amount
i = Interest rate per period
n = number of periods
Future value =
or
$250,000 =
$250,000 =
$250,000 =
$250,000 = C × 5.52564
or
C =
C = $4,5243.63
Answer:
(A) $ 2,602.34
(B) $ 4,156.97
(C) $ 8,233.47
(D) $ 46,796.64
Explanation:
We need to solve for the PMT of an ordinary annuity:
(A)
FV 24,850
time 8
rate 0.05
C $ 2,602.337
(B)
FV 1,030,000
time: 43
rate 0.07
C $ 4,156.972
(C)
FV 856,000
time 29
rate 0.08
C $ 8,233.466
(D)
FV 856,000
time 14
rate 0.04
C $ 46,796.641
Answer:
The opportunity cost of producing a pound of bananas is 2 pounds of apples.
Explanation:
At a point on the production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas are being produced.
When quantity of bananas is increased by 100 pounds from 1,200 to 1,300 pounds, the quantity of apples declined by 200 pounds, from 500 pounds to 300 pounds.
The opportunity cost of producing a pound of bananas
=
=
= 2 pounds of apples