Answer:
$76,620.83
Explanation:
According to the scenario, computation of the given data are as follows
Future Value (FV) = $100,000
Rate of interest = 10% yearly
Rate of interest (Rate) = 10%÷ 2 = 5% semiannually
Number of period (Nper) = 9 × 2 = 18
Face value = $100,000
Payment (pmt) = $100,000 × (6%÷2) = $3,000
By putting the value in excel present value formula, we get,
PV = $76,620.83
Attachment is attached below
Answer:
Option (B) is correct.
Explanation:
The utility maximization point for a consumer is as follows:
It is given that,
price of Pepsi(x) = $1 per can
price of a hamburger(y) = $2
Marginal utility from Pepsi = 4
Marginal utility from hamburgers = 6
Hence,
4 > 3
Therefore, it can be seen that the consumer's utility is not maximized at this point.
Law of diminishing marginal utility states that as the consumer consumes more and more quantity of goods then as a result the utility obtained from the consumption goes on diminishing.
So, there is a need to increase the quantity of Pepsi consumed and reducing the quantity of hamburgers consumed.