I do not get what the question is asking
Answer:
The question is incomplete, you are asked to draw a production possibles frontier between safety and range and explain how it works.
I drew a bounded out curve, where you can maximize safety but at the same time you minimize range, or the opposite. If you are located in a point of the curve, lets say point 0, and wish to gain range and move to point 1, you will lose safety. If you want to increase safety and move to point 2, you will lose range.
Answer: a) $66,388.86
the total sum Earl will receive when he withdraws the money in his 65th birthday is $66,388.86
Explanation:
Given that;
Annuity = $150
r = 10%
Earl is 25years now
Earl plans to withdraw the money when he is 65
which mean Period N = ( 65 - 25 ) = 40
To find the future value, we use use the express
Future value = annuity × (((1+r)^n)-1)/r)
we substitute our values
Future Value = 150 × (((1 + 10/100)^40)-1)/10/100)
= 150 × (((1.10)^40)-1) / 0.01)
150 × ((45.2592 - 1)/0.1)
150 × 442.5924
Future Value = $66,388.86
therefore the total sum Earl will receive when he withdraws the money in his 65th birthday is $66,388.86
a beverage with MORE than a half percent alcohol by volume