calculator solutionvChang is investing $2,500 today and will do so at the beginning of each of the next six years for a total of
1 answer:
Answer: $28,249.25
Explanation:
As the payments are constant, this represents an annuity. Also, as the payment is made at the beginning of every period, it is an Annuity Due.
The value of the end of the 7 years is the future value of the annuity due which is found by:
= Annuity * Future value factor of an annuity, 7 years, 12%
= 2,500 * 11.2997
= $28,249.25
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Answer:
hello your question is incomplete attached below is the complete question
A ) $7.766
B ) 4350 workers
C ) 61777.20
D ) $33782.10
Explanation:
A) Real wage = 4 *
where ; K = 120000, L = 7000
hence Real wage = 7.06 before 10% increase
After 10% increase ; Real wage = 7.06 + (7.06 * 0.1 ) = $7.766
B) employment ( L )
=
= 4350 workers
C) Output
Y = 5 ( 120000 )^0.2 * (7000)^0.8
= 61777.20
D) Total amount earned by workers
L * W = 4350 * 7.766
= $33782.10
