Answer:
the value after 5 years is 72,103.59
Explanation:
One can calculate this kind of problems as the calculation of future value of the today car cost, so take into account the next formula:
where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:
Answer:
$0.808
Explanation:
Given:
Number of workers hired = 6
Number of units to be produced = 90
Fixed cost of the product = $6 per unit
Variable cost = $10 per unit
Marginal product of the 7th unit of labor = 4
Now,
Total variable cost = Variable cost per unit labor × Total labor hired
or
The total variable cost = $10 × 7 = $70
Thus,
The total cost = Fixed cost + Total variable cost
or
The total cost = $6 + $70 = $76
Now,
the total units produced
= Unit produced by 6 labor + marginal product from seventh labor
or
The total units produced = 90 + 4 = 94
Hence,
the average variable cost of production when the firm hires 7 workers
=
or
=
= $0.808