Answer:
C. is characteristic of an individual firm operating in a perfectly competitive market.
Explanation:
Demand is perfectly elastic if the coefficient of elasticity is infinite. It means thay consumers would only buy at one price. Once that price changes, demand falls to zero.
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply.
If a seller decides to increase the price of his good in a perfect competition, demand falls to zero and reducing price woild lead to losses.
I hope my answer helps you
<span>Annual = Years = 6.64; Actually 7 years
Monthly = Years = 6.33; 6 Years, 4 months
Daily = Years = 6.30; 6 Years, 111 days
Continuously = 6.30; 6 Years, 110 days
The formula for compound interest is
FV = P*(1 + R/n)^(nt)
where
FV = Future Value
P = Principle
R = Annual interest rate
n = number of periods per year
t = number of years
For this problem, we can ignore p and concentrate on the (1+R/n)^(nt) term, looking for where it becomes 2. So let's use this simplified formula:
2 = (1 + R/n)^(nt)
With R, n, and t having the same meaning as in the original formula.
For for the case of compounding annually
2 = (1 + R/n)^(nt)
2 = (1 + 0.11/1)^(1t)
2 = (1.11)^t
The above equation is effectively asking for the logarithm of 2 using a base of 1.11. To do this take the log of 2 and divide by the log of 1.11. So
log(2) / log(1.11) = 0.301029996 / 0.045322979 = 6.641884618
This explanation of creating logarithms to arbitrary bases will not be repeated for the other problems.
The value of 6.641884618 indicates that many periods is needed. 6 is too low giving an increase of
1.11^6 =1.870414552
and 7 is too high, giving an increase of 1.11^7 = 2.076160153
But for the purpose of this problem, I'll say you double your money after 7 years.
For compounding monthly:
2 = (1 + R/n)^(nt)
2 = (1 + 0.11/12)^(12t)
2 = (1 + 0.009166667)^(12t)
2 = 1.009166667^(12t)
log(2)/log(1.009166667) = 0.301029996 / 0.003962897 = 75.96210258
And since the logarithm is actually 12*t, divide by 12
75.96210258 / 12 = 6.330175215
Which is 6 years and 4 months.
For compounding daily:
2 = (1 + 0.11/365)^(365t)
2 = (1 + 0.00030137)^(365t)
2 = 1.00030137^(365t)
log(2)/log(1.00030137) = 0.301029996 / 0.000130864 = 2300.334928
2300.334928 / 365 = 6.302287474
Continuously:
For continuous compounding, there's a bit of calculus required and the final formula is
FV = Pe^(rt)
where
FV = Future value
P = Principle
e = mathematical constant e. Approximately 2.718281828
r = Interest rate
t = time in years
Just as before, we'll simplify the formula and use
2 = e^(rt)
Since we have the function ln(x) which is the natural log of x, I won't bother doing log conversions.
rt = ln(2)
0.11 * t = 0.693147181
t = 0.693147181 / 0.11
t = 6.301338005</span>
Answer:
$27,500
Explanation:
Discount points are also called mortgage points and are fees paid as prepaid interest rate on a mortgage property.
One discount point is equivalent to 1% of the loan amount.
In the given scenario a down payment of 10% was made.
Also they are pay one discount point to close.
So total down payment to be made is 10% + 1% = 11%
Amount is cash for closing = 0.11 * 250,000 = $27,500
Answer:
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Explanation:
answer
When an insured stops making the payments on the loan taken his cash value policy will terminate when the loan amount with interest equals or exceeds the cash value
Explanation:
Cash value policy are the type of saving policy and they provide the life time coverage of the policy holders most cash values have high premiums than the insurance
It requires a fixed level premium payment and the from that amount the money is allocated for different reasons according to the wish of the policy holder and the remaining amount is deposited as the cash value amount
