The product’s equilibrium price
Just simply because the price and quantity is the same
In "The Founder," The McDonald brothers are worried about maintaining standards in their franchises. What are at least three sta
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Answer:
310,588.5
Explanation:
As is not said we can assume the 2,100 each year to be paid at the end of the year, and the 7% to be used as a compunded anually rate. So let´s first think just about the 2,100, as they are regulary payments, they can be seen as an anuity inmediate, the formula is as follows:
where sn is the future value of the regular payments, i is the interest rate and n is the number of payments and p is the amount of regular payment so in this particular case we have:
=198,367.65
So now let´s think on the gift of 29,000 as it is paid on 10 years, there will remain 20 years with an investment rate of 7% compounded anually. so there we have the classic formula of future value
where FV is the future value, PV is the present value, i is the interest rate per period, and n is the number of periods. Again in this particular case we have:
so the total amont will be:
total=198,367.65+112,220.85
total=310,588.5