Answer:
She need to pay $134 into the annuity each month for the annuity to have a total value of $5000 after 3 years.
Explanation:
Total value of annuity after = $5,000
Interest rate = 2.4% = 0.024 compounded annually
Number of year = 3 years
Future Value of Annuity = P [ ( ( ( 1 + r )^n)-1 ) / r ]
$5,000 = P [ ( ( ( 1 + 0.024/12 )^3x12 )-1 ) / 0.024/12 ]
$5,000 = P [ ( ( ( 1 + 0.002 )^36 )-1 ) / 0.002 ]
$5,000 = P X 37.29
P = $5,000 / 37.29
P = $134.1 = $134
The answer is expert power.
Answer:
b. Fair Pricing
Explanation:
Fair Pricing is the degree to which both businesses and customers believe that the pricing is reasonable. It is necessarily not the lowest price but both seller and buyers are very much satisfied with it because buyers are willing to pay that price and it is quite affordable and at the same time, firms are also very much contended with this price because they can make good reasonable profits at this price as well, therefore, it is a win-win station for both customers and organizations.
Answer:
2.96% will be effective rate of the investment
Explanation:
First year:
1,000 x 1 + 10%) = 1,100
<em><u>Second year: </u></em>
1,100 + 3,000 = 4,100 invesmtent balance
4,100 x (1 - 5%) = 3,895
<em><u>Third year:</u></em>
3,895 + 2,000 = 5,895
5,895 x (1 + 2%) = 6012.9
<em><u>Fourth year:</u></em>
6012.9 + 500 = 6512.9
6,512.9 x (1+ 8%) = 7033.932
We calcualte rate that is equivalent with the following cash flow:
We solve using excel goal seek
0.029646151
Answer:
e. price elasticities of demand for apples and oranges are the same over these price ranges
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Price elasticity = percentage change in quantity demanded / percentage change in price
Percentage change in price = (50-40) / 50 = 0.2 × 100 = 20%
Percentage change in quantity demanded of Apples = (120 - 100) / 100 = 0.2 × 100 =
20%
Percentage change in quantity demanded of oranges = (240 - 200) / 200 = 0.2 × 100 = 20%
Price elasticity of demand for oranges = 20% / 20% = 1
Price elasticity of demand for Apples = 20% / 20% = 1
When coefficient of elasticity is equal than one, elasticity of demand is unit elastic.
This implies that the elasticity of demand for Apples and oranges are the same. A change in the price of oranges and apples would lead to the same proportional change for each of the demand for Apples and oranges.
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