Answer:
$80 lost for not working
Explanation:
Opportunity cost refers to the sacrificed benefits as a result of preferring on a particular option over another. As people make choices, the forfeit one option in favor of another. Opportunity cost is the missed value of the next best alternative.
For John, he has a choice between working or going to the concert. He has two tickets worth $50. Working would mean her twice her regular income, which is $20 per hour. If he works for four hours, his total earning will be $80. If John chooses to go to the concert, he will miss the opportunity to earn $80. The opportunity cost will be the missed $80 that he would have received from working.
Answer:
IRR 6% for Jabob
His friend will need 12 years saving cash to obtain their collegue funds.
Explanation:
We will solve for the rate being the annuity of 3 payment of 800
and the present value 2,138.41
C 800
time 3
PV 2,138.41
rate ?
To solve we can use excel, a financial calculator or trial and error
For excel we will do the following:
write the list of cash through the loan life:
-2,138.41
+800
+800
+800
then we write in the empy cell
=IRR(
select the values and press enter
This will give the IRR which is 6%
For the second assignment:
we need to solve for time:
C 3,800
time n
rate 0.06
PV $31,897
We work out the formula:
Now we solve the right side and apply logarithmic properties
-n = -11.77128325
n = 11.77
It will take 12 years to obtain their target amount
Answer:B. $1,500
Explanation:
Interest revenue is money earned when an entity or individual loans money to another. it can also be regarded as money accrued from investments. IT is calculated as
Interest Revenue = Principal x Rate x Time
= $100,000 x 6% x 90/360
= $100,000 x 0.06 x 0.25
= $1,500
Therefore the interest charge by the bank is $1500.
One single payment of money, opposed to a an annuity. (a series of payments made over time)
