Answer:
PV of Perpetuity = $5000
Explanation:
A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,
PV of Perpetuity = Cash Flow / r
Where,
- r is the required rate of return
PV of Perpetuity = 250 / 0.05
PV of Perpetuity = $5000
To answer the question above as to which type of life insurance policy combines term insurance and investment elements is letter C, Universal Life. Universal Life or in other term Permanent life Insurance is a type of insurance to which is flexible low-cost protection and term life insurance as well as the saving elements like the whole life insurance.
If the government has a budget deficit, crowding out might
occur. Crowding out leads to all of the following; a higher real interest rate,
a smaller capital stock in the future and a decreased quantity of investment. Borrowing from the rest of the world Government budget surpluses, private saving.
About 40 jewls of power in the other direction
Answer: Option B and C
Explanation: In simple words, oligopoly refers to the market structure in which there are few firms operating at a huge level and selling products that are close but not absolute substitutes of each other.
The high level of investment and too much of legal formalities makes it difficult to entry in such industries. Firms in such industries produce identical goods thus they do not compete in the amaretto with respect to price.
the firms operate their market on the basis of non price factors such as advertisements but still are mutually interdependent on each other as a minor decrease in price of other can deregulate the demand in the whole industry. Automobile sector is one the primary examples of oligopoly.