Interest inventory that classifies people according to 6 different types

Raul has 4 Cal Ripken and 2 Nolan Ryanbaseball cards. The prices of these baseball cards are $24 for Cal and $12 for Nolan. Raul

Softa [21]

Answer: a) 1

b) yes marginal rate of substitution is less than the relative price

c) 2.00

Explanation:

a) Raul’s marginal rate of substitution is 1 because he is only willing to trade 1 cal card for 1 additional Nolan card

b) Raul’s marginal rate of substitution is Mc/Mn = 1 However, the relative price of a Cal Ripken card is Pc/Pn = $24/$12 = 2.00. Since the marginal rate of substitution is less than the relative price, Raul can make himself better off by selling 1 Cal card and buying Nolan cards.

c) His marginal rate of substitution must be equal to the relative price; the relative price rule holds that says that Mc/Mn = Pc/Pn. From b above we know that the relative price is 2.00, Raul's marginal rate of substitution must also be 2.00.

6 0

3 years ago

Jodi is retiring at the age of 65. When she retires, she estimates that she will need a monthly income for 25 years. If Jodi sta

sergejj [24]

Monthly income refers to the gross countable income received or projected to be received during the subsequent month.

<h3>Interest compounded monthly</h3>

Given Information:

Principal = 328,133.32
Interest rate = 6.2%, compounded monthly
Term = 25 years

A = P (1 + r/n)^nt

A = 328,133.32 (1 + 6.2%/12)^12*25

A = 328,133.32 (1 + 0.0052)^300

A = 328,133.32 (1.0052)^300

A = 328,133.32 (4.74)

A = 1,555,351.94 Total value after 25 years.

=1,555,351.94 / 300 months = 5,184.51 per month.

Learn more about monthly income, refer to the link:

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4 0

2 years ago

Match the type of financial institution with the correct description of its activities

TEA [102]

Answer:

as I found, these are the options available to be matched.

Type of Financial Institution

Commercial Banks
Thrifts
Insurance companies
Mutual fund companies
Pension funds
Securities firms
Investment Banks

Description

JP Morgan Chase

savings and loan associations and credit unions that offer checking and savings accounts

offer policies where individuals pay a premium to insure against a loss of some kind

Fidelity, Vanguard

collect monthly payments from workers to buy stocks/funds with proceeds

Smith Barney, Charles Schwab

help corporations and governments raise money by selling stocks and bonds

Explanation:

Commercial Banks > JP Morgan Chase
Thrifts > savings and loan associations and credit unions that offer checking and savings accounts
Insurance companies > offer policies where individuals pay a premium to insure against a loss of some kind
Mutual fund companies > Fidelity, Vanguard
Pension funds > collect monthly payments from workers to buy stocks/funds with proceeds
Securities firms > Smith Barney, Charles Schwab
Investment Banks > help corporations and governments raise money by selling stocks and bonds

good luck!

6 0

3 years ago

Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, th

umka2103 [35]

Answer:

$468,844 approx.

Explanation:

Assumption: Since the question is incomplete, with the available information it has been construed that calculation of bond price is required and the question has been solved accordingly.

The price of a bond is the present value of future cash receipts it generates to the investor in the form of interest stream and principal stream.

$B_{0} = \frac{i}{(1\ +\ ytm)^{1} }\ +\ \frac{i}{(1\ +\ ytm)^{2} }\ +.....+\frac{i}{(1\ +\ ytm)^{n} } \ + \frac{RV}{(1\ +\ ytm)^{n} }$

wherein,

$B_{0}$ = price of bond as on today

i = annual coupon payments

ytm= investor's expectation of interest or market rate of interest on similar bonds

RV = Redemption value of such bonds assumed to be the face value

n = term to maturity

$B_{0} = \frac{22500}{(1\ +\ .05)^{1} }\ +\ \frac{22500}{(1\ +\ .05)^{2} }\ +.....+\frac{22500}{(1\ +\ .05)^{20} } \ + \frac{500000}{(1\ +\ .05)^{20} }$

$B_{0}=$ 12.46221 × 22,500 + 0.376889 × 22,500 = 280,399.725 + 188444.5

$B_{0} =$ $468,844 approx

This is the present value of the bond which is lower than it's face value because market rate of return of similar bonds is higher than the coupon rate of payment by Westside Corporation.

6 0

4 years ago

gary is working extra hard because his boss promised him a bonus if he reached his goal. this is best exemplifies

GrogVix [38]

Gary is putting in extra effort because his boss assured him of a bonus if he meets his objective. This is the perfect illustration of extrinsic motivation. Extrinsic motivation is significant because it can be a useful tool for changing behaviour.

Extrinsic motivation is when someone is motivated by rewards or other factors, such as praise, fame, or money. This type of motivation is not driven by internal forces like intrinsic motivation. Extrinsic incentive includes things like getting paid to complete a task. The most fundamental distinction is between extrinsic and intrinsic drive, or doing something because it results in a separate outcome and doing something because it is intrinsically interesting or enjoyable. Extrinsic motivation is characterized as an incentive to engage in an activity based on achieving an external goal, winning a competition, gaining acclaim and approval, or receiving a prize or cash.

Learn more about extrinsic motivation here

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#SPJ4

3 0

1 year ago