Answer:
$19.9
Explanation:
According to the given situation the computation of pre-tax net profit is shown below:-
Net pre-tax profit = Option exercised per share + Actual stock price at the end + Profit - Option premium
= $85 + $60 + $25 - $5.10
= $19.9
Therefore for computing the pre-tax net profit we simply applied the above formulas.
Answer:
Autonomous consumption is <u>$1,000</u> and the marginal propensity to consume is <u>0.9</u>.
A consumer whose income increases by $100 will increase consumption by <u>$90</u>.
Explanation:
Given C = 1000 + 0.9Y
Autonomous consumption refers to consumption expenditure of consumers that does not depend on income. Therefore, autonomous consumption is therefore the consumption expenditure made by the consumers when they do not have income or when income is zero (i.e. when Y = 0).
Substituting for Y = 0 into the consumption function, we can obtain autonomous consumption is follows:
Autonomous consumption = 1000 + (0.9 * 0) = 1,000
The marginal propensity to consume refers to the proportion of the increase in disposable income that is spent on the consumption of goods and services by a consumer. From the consumption function, the marginal propensity to consume is 0.9.
Since marginal propensity to consume is 0.9, a consumer whose income increases by $100 will therefore increase consumption by $90 (i.e. $100 * 0.9 = $90).
Most likely the National Institute for Standards and Technology falls under the U.S. Department of Commerce
Answer:
Annual deposit= $2,803.09
Explanation:
<u>First, we need to calculate the monetary value at retirement:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {22,000*[(1.08^25) - 1]} / 0.08
FV= $1,608,330.68
Now, the annual deposit required to reach $1,608,330.68:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,608,330.68*0.08) / [(1.08^50) - 1]
A= $2,803.09
