Answer:
Steven will need a capital of $1,061,342.10
Explanation:
Annual Savings
= $80,000*0.8
= $64,000.00
Period
= 68 - 43
= 25
Future Value of annual savings
= FV
= $64000*(1 + 0.03)^25
= $134,001.79
Future Value of social security
= FV
= $26000*(1 + 0.03)^25
= $54,438.23
Annual Investment required at age of 68
= $134,001.79 - $54,438.23
= $79,563.56
Present value of a number of cash flows over his retirement years,
Inflation Adjusted Rate
= (1.08/1.03) - 1
= 4.85%
Period
= 90 - 68
= 22
Capital Required
= PV(4.85%,22,-79563.56)
= $1,061,342.10
Therefore, Steven will need a capital of $1,061,342.10
Answer:
Explanation:
This could be due a number of factors.
1 Externality effect
2 There could also be market failure, when property rights are not properly defined.
Externality is the effect of a third party on a property right, when all parties cannot come to an agreeable resolution on properties this could lead to inefficient use of land.
Also when the property rights are not put in place its difficult to come to a resolution that satisfies all parties.
Answer: A correlation of 1.00 among demand in two
Explanation:
Answer:
Yes $30 agsinst $19.50
The variable cost for the first 50 untis is $17.50
Yes $30 against $27.25
average variable cost for the first 100 units $26.25
Marginal cost for the first 50 units: 17.50 which is lower than marginal revenue
from 51 units and subsequent untis: 35 which is higher than marginal revenue
It will produce 50 units achieving $525 of profit
Explanation:
$100 fixed cost /50 units + 17.50 = 19.50 average cost
selling price: $30
100 fixed cost + 17.50 x 50 + 35 x 50 = 2725
total cost 2,725 / 100 units = 27.25 unit average cost
selling price $30
($17.50 x 50 + $35 x 50)/100 = 26.25
After the 50untis our profit will decrease as the marginal revenue is lower than marginal cost thus, we stuop production at the 50 units:
50 x 30 - 100 fixed cost - 17.50 x 50 variable cost = 525 profit
Answer:
This profit equation is an equation of a parabola that opens downward (Since A=-0.07<0) and has its vertex at
Thus, revenue is maximized when x=250 hundred units. At this quantity maximum profit is
P(250)=3800.23 hundred dollars
b. Profits are maximised at x=250 hundred units. The per unit price at this is,
