Answer: B & E
Explanation:
If a subsidy is provided for the production of helmets, the demand curve is unaffected, but the supply curve shifts to the right. A production subsidy encourages production because it reduces costs for the producer. However, it will not affect market demand.
Answer:
$4,021 two years ago
Explanation:
Given that
The Rate of interest is 10%
And as we know that
PV = FV × (1 + i)^(-n)
And
FV = PV ÷ (1 + i)^n
where,
PV = prsent value,
FV = future value ,
i = interest rate,
n = years
Now
a)
FV = $4,545 × (1.1)
= $4,999.5
b)
PV = $5,500 ÷ (1.1^-1)
= $5,000
c)
FV = $4,021 × (1.1^2)
= $4,865.41
d)
PV = $6,050 × (1.1^-2)
= $5,000
hence, the correct option is c. $4,021
It is wrongly written as $4,012
Answer:
It will extend the loan for 15.83 months = 16 more months.
Explanation:
We need to calcualte the difference in time between one option and another:
Original Loan:
C $310.00
time n
rate 0.0064583 (0.0775annual rate / 12 month per year)
PV $9,800
We rearrenge and solve as much as we can:

Now, we solve using logarithmics properties:
35.47385568
Now we calcualte with the new terms:
C $225.00
51.30909653
Last step, we solve for the difference:
51.30 - 35.47 = 15.83 = 16 more months
Hi there
Excess reserve balance is
1,000−1,000×0.1=900
Hope it helps