Answer:
The last option is the answer -$141.80
Explanation:
we will use the present value formula for Trish she gets paid every first day of the month therefore she will receive an immediate payment of cash flow which will be added to the present value of future periodic value. Therefore we will find the difference between present values for Trish and Josh which have the same amounts which they'll receive per month.
Given: Trish and josh both receive $450 per month therefore that will be C the monthly future payment that will be received.
They will receive these amounts in a course period of Four years so that will be n = 4 x12=48 because we know that they will receive these payments every month or on a monthly basis for four years. which n represent periodic payments.
i which is the discount rate of 9.5%/12 as we know they will recieve these amounts monthly.
Therefore using the following formulas for present value annuity:
Pv = C[(1-(1+i)^-n)/i] and Pv= C[(1-(1+i)^-n)/i](1+i) then get the difference between these two present values for Trish and Josh.
therefore we will substitute the above values on the above mentioned formula to get the difference:
Pv= 450[(1-(1+9.5%/12)^-48)/(9.5%/12)] - 450[(1-(1+9.5%/12)^-48)/(9.5%/12)](1+9.5%/12) then we compute and get
Pv= $17911.77614 - $18053.5777
Pv = -$141.80 is the difference between the two sets of present values as one has an immediate payment and one doesn't have it.
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Answer:
B) Developing countries are using less oil because of substantial investments in renewable energy.
Explanation:
Developing countries using less oil by investing in renewable sources of energy will weaken the argument as this directly contradicts the basis of James' argument. Since there is less demand from developing countries for oil, the argument that their demand pushes the prices high falls apart and hence is now a weakened argument.
Hope that helps.
Answer:
1. The increase in savings resulting directly from this change in income is $500
That is
Increase in savings = Increase in income minus increase in consumption
= 2000 - 1500
= $ 500
2.The marginal propensity to save (MPS) is calculated by dividing the change in savings by the change in income.
That is
ΔS/ ΔY,
Therefore given
Change in savings =ΔS =$500
Change in income =ΔY = $2000
MPS = 500/2000
MPS = 0.25
3.The marginal propensity to consume (MPC) is calculated by dividing change in consumption by changes in come.
That is ΔC / ΔY
Where ΔC = 1500
ΔY = 2000
Therefore MPC = 1500/2000
= 0.75
1. The increase in savings resulting directly from this change in income is $
