Answer:
Explanation:Explanation is
in a filely/3fcEdSx
bit.
When a consumer has to decide between buying a new smartphone or renting a new car, the determination of opportunity costs is difficult, as both the expenses have different utilities.
<h3>What is opportunity cost?</h3>
The cost, which is undergone in order to let go of an alternative divestment of such cost, is known as an opportunity cost. An opportunity costs may be backed by emotions and other external factors.
Hence, the significance of opportunity costs is given above.
Learn more about opportunity cost here:
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In the short run the decrease in the investment spending associated with business pessimism will cause the price level to fall below
Explanation:
Due to this the price level and that the people expect and the quantity of the output will sharply fall below the natural level of the output the business pessimism will cause the markets to be down and it will increase the problem of unemployment
There will a natural increase in the problem of unemployment in the short run hence the decrease in the investment spending associated with business pessimism will cause the price level to decrease
Answer:
$108,622.60
Explanation:
Calculation for the amount Janine's IRA will worth when she needs to start withdrawing money from it when she retires
Based on the information given we were told that She has the amount of $5,000 in an IRA, which is a vital part of her retirement nest egg in which She has well believes that her IRA will increase at an annual rate of 8%.
Secondly we were told that she is 25 age and plan to retire at the age of 65 which means that the number of years until her retirement will be 40 years(65 years-25 years)
Now let calculate how much she will be worth using this formula
Amount worth= Present value in IRA*(Annual rate increase)^ Numbers of years until retirement
Let plug in the formula
Amount worth=5,000 *(1 + 0.08)^40 =
Amount worth=5,000*(1.08)^40
Amount worth =5,000*21.72452
Amount worth= $108,622.60
Therefore Janine's IRA will be worth $108,622.60 when she needs to start withdrawing money from it when she retires.
Answer:
Bond Price = $5,300,862.264 rounded off to $5,300,862.26
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. Assuming the bond is an annual bond, the semi coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 6,000,000 * 0.06 * 6/12 = 180
,000
Total periods (n) = 8 * 2 = 16
r or YTM = 0.08 * 6/12 = 0.04 or 4%
The formula to calculate the price of the bonds today is attached.
Bond Price = 180000 * [( 1 - (1+0.04)^-16) / 0.04] + 6000000 / (1+0.04)^16
Bond Price = $5,300,862.264 rounded off to $5,300,862.26
