Answer:
$ 1,592,121.121
Explanation:
Present Value at T=0 is $120,000
N = 30
I = 9%
PMT = $11,680.36
We shall calculate the Future Value without PMT and then with PMT. The difference would be the amount of interest paid.
FV at T = 30 with PMT is -$3,184,242.537
FV at T = 30 without PMT is -$1,592,121.416
The total interest paid on the loan is = $ 1,592,121.121
Answer: I don't know but I also need help with an assignment:
You wish to lift a 400 lb car engine a vertical distance of 3 ft using a strong rope. Unfortunately, your hand crank winch can only generate 100 lb of tension in your rope. In order to overcome this obstacle, you use a multiple pulley system (block and tackle) to lift the engine.
What is the mechanical advantage of this system?
What length of rope is required to complete the work?
Answer:
Change; overestimates
Explanation:
The substitution bias in the consumer price index refers to the idea that consumers change the quantity of products they buy in response to higher price, and the official CPI does not reflect this and overestimates the cost of the market basket.
The consumer price index (CPI) is a measure used to analyze and examine the weighted average or aggregate of prices of a basket of goods and services paid for by consumers such as medical, food, and transportation.
In Economics, the substitution bias is a limitation of the consumer price index (CPI) because it doesn't take into consideration the substitution effect of consumer's choice during inflation.
<em>Generally, consumers usually choose to substitute a particular product with another having a cheaper price, when its price rise than the normal price they buy at. The consumer price index will still overestimate the cost of the market basket even when the consumer has substituted the particular product; consumer switching from an expensive product to a relatively alternative. </em>
Answer:
The price of products sold by Ike's Tropical Foods is likely to decrease in the future.
Explanation:
Products that Tropical Foods specializing in is Inferior Goods which is goods whose demand will decrease following the increase in consumers' income.
The reason while rice and beans are Inferior Goods are because these are low-priced products complementing low-priced meals. As its consumers' income increases, people may consume less low-priced food which includes rice and beans, instead, they switch to consuming more expensive food like meats, milks, eggs...
So, as incomes of individuals in the lowest income bracket are expected to increase by 10% over the next year, these people may consume less price and bean, so, demand for these products will decrease and price will fall subsequently.
Answer:
QD=600-40P
Explanation:
The old equation for the demand for pizza is Qd = 300 - 20P
Now because of an increase in the price of a substitute the demand for pizza doubles, in order to find the new equation will multiply the old equation by 2 because the demand has doubled.
300*2=600
20P*2=40P
New equation = 600-40P
We can check whether our new equation is correct or not.
If we assume the price of pizza to be 10 and then put 10 in both the equations the quantity from equation 2 should be double that of equation 1.
Equation 1= 300-(20*10)
=300-200=100
Equation 2 = 600-(40*10)
=600-400=200
AS we can see the quantity doubled on the same price which means our equation is correct.
