Answer:
D. Reduce Output but continue production
Explanation:
Since marginal cost equals average total cost, it can be deduce that she's operating at her most productively efficient region. But she's force to sell at a price lower than her average total cost which could indicate a loss in profit. This means that she should stop production. But then again, her average variable cost is less than the market price, therefore it is adviceable for her to reduce output but continue to produce.
Answer:
$9,233.
Explanation:
The balance of the loan after the 32th payment can be determined after constructing a loan amortization schedule for this car loan. To construct the amortization schedule, we need to first calculate the monthly instalments (PMT) as this is the missing parameter for our time value of money.
I am using a financial calculator here to calculate the monthly instalment :
PV = $25,000
P/YR = 12
I = 8%
N = 48 (years)
FV = $0
PMT = ?
Therefore, the monthly instalment PMT is $610.32.
But, we need the balance immediately after the 32th payment, so we construct an amortization schedule - now that we have all the parameters.
On a financial calculator enter 1 INPUT 32, SHIFT AMORT.
Pressing the equal sign gives the principle then interest and finally the balance of this loan after the 32th payment. The balance you should get if you follow this procedure carefully is $9,233.
to me it would actually have to be college course math because im not really good at trigonometry
Answer:
a) $2000
b) $1,886.7925
C) $2,036.7925
Explanation:
First, the question states to determine the expected claim cost per policy
Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.
A) Expected Claim Cost per policy
= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)
= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000
Part B: discounted expected claim cost per policy
Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate (discounting used)
=$2,000 ÷ (1 + 0.06)
= $1,886.7925
Part C:: Determine the Fair Premium
Fair Premium is calculated as follows
The discounted policy claim cost + the Processing Cost per application + The fair profit loading
= $1,886.7925+ $100+50 = $2,036.7925
Answer:
The answer is "The end of the Ice Age."
Explanation: