Answer:
$1,307
Explanation:
The computation of the future value by using the following formula is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
$1,500 = Present value × (1 + 0.035)^4
So, the present value is
= $1,500 ÷ (1.035)^4
= $1,307
Hence, the present value is $1,307 and the same is to be considered
Answer:
$326,622.73
Explanation:
Calculation to determine How much will you have in your account if you make deposits for 20 years
Using this formula
Future value = Annuity × {( 1 + interest rate) ^ time period - 1} ÷ interest rate
Future value = $5,900 × {( 1 + 0.097 ^ 20 years - 1} ÷ 0.097
Future value= $5,900 × 55.3597842916
Future value= $326,622.73
Therefore the amount you will have in your account if you make deposits for 20 years is $326,622.73
Answer:
2 more cars will be produced in the market equilibrium versus the social optimum. The right answer is a.
Explanation:
According to the given data we have the following:
demand for cars is given by the function P = 75 − 3q
private costs are given by the function P = 10 + 2q
75 − 3q= 10 + 2q
Therefore, 65=5q
q=13
P=36
Therefore, socially optimal number of cars is 13.
To calculate How many more cars will be produced in the market equilibrium versus the social optimum, we have to calculate the following:
social cost=10+2q+10
=20+2q
75 − 3q=20+2q
55=5q
q=11
P=20+2(11)=42
Therefore, Qm-Qs=13-11
Qm-Qs=2
2 more cars will be produced in the market equilibrium versus the social optimum
A bond amortization schedule for all three years of the bond's life
principal 10,000
interest paid 500
principal use PV of $1 at 4% for 3 years
10000 * 0.889 = 8890
for interest use PV of an ordinary annuity
500 * 2.77509 = 1388
Issue price of bonds 10278
2) 31-Dec Year 1 Year 2
interest expense 411 408
bond liability 10189 10096
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