An insurance policy with a higher premium most likely has a lower deductible
Answer:
Option D. Both A and B
Explanation:
The reason is that the investment that are readily convertible to cash are less risk and as a result the investors are compensated with lower returns and vice versa. So the only statement that is not false statement is option C and the statement A and B are False.
Answer:
The correct answer is letter "D": the revenue a government created by printing money.
Explanation:
<em>When the government prints more money, there will be more supply of it. A higher supply of money tends to increase general prices causing inflation. Therefore, households will have to pay more money for goods and services which implies they will be paying more taxes, benefiting the government since it will have more money to finance its projects.
</em>
The previous practice mentioned is implemented by governments that are not willing to increase the interest rate directly.
Answer:
A. 15 units
B. $130
Explanation:
In order to solve this, we need to use the profit maximization condition for monopoly.
MR = MC will give us the optimal quantity and price for the monopolist.
The consumer's demand for the product is:
Qd = 80 - 0.5P
Therefore, we have:
P = (80 / 0.5) - (Qd / 0.5)
P = 160 - 2Qd
Recall that, Total Revenue:
TR = P * Q
So, in this case TR = 160Q - 2Q^2
MR = d(TR) / dQ = 160 - 4Q
Now, MR = MC
160 - 4Q = 100
4Q = 160 - 100
4Q = 60
Q = 60 / 4
Q = 15 units.
Now, P =160 - 2Q
P = 160 - 2(15)
P = 160 - 30 = 130
The optimal number of units to be placed in a package will therefore be 15 units while the firm should charge $130 for this package.
Answer:
28 month (approx)
Explanation:
Given
Present value = $470
Monthly Payment = $20
Interest Rate = 15% annual = 15% / 12 = 1.25% monthly
=0.0125
<h3>
![Present Value = PMT [\frac{1-(1+i)^{-n}}{i}] \\470 = 20 [\frac{1-(1+0.0125)^{-n}}{0.0125}]\\470/20 = [\frac{1-(1+0.0125)^{-n}}{0.0125}]\\23.5 \times 0.0125 =1-(1+0.0125)^{-n}\\1-0.29375= (1+0.0125)^{-n}\\0.70625 = (1+0.0125)^{-n}\\0.70625 =(1.0125)^{-n}\\0.70625= \frac{1}{(1.0125)^{n}}\\(1.0125)^{n}=1.4159292\\n=28(approx)](https://tex.z-dn.net/?f=Present%20Value%20%3D%20PMT%20%5B%5Cfrac%7B1-%281%2Bi%29%5E%7B-n%7D%7D%7Bi%7D%5D%20%5C%5C470%20%3D%2020%20%5B%5Cfrac%7B1-%281%2B0.0125%29%5E%7B-n%7D%7D%7B0.0125%7D%5D%5C%5C470%2F20%20%3D%20%5B%5Cfrac%7B1-%281%2B0.0125%29%5E%7B-n%7D%7D%7B0.0125%7D%5D%5C%5C23.5%20%5Ctimes%200.0125%20%3D1-%281%2B0.0125%29%5E%7B-n%7D%5C%5C1-0.29375%3D%20%281%2B0.0125%29%5E%7B-n%7D%5C%5C0.70625%20%3D%20%281%2B0.0125%29%5E%7B-n%7D%5C%5C0.70625%20%3D%281.0125%29%5E%7B-n%7D%5C%5C0.70625%3D%20%5Cfrac%7B1%7D%7B%281.0125%29%5E%7Bn%7D%7D%5C%5C%281.0125%29%5E%7Bn%7D%3D1.4159292%5C%5Cn%3D28%28approx%29)
</h3><h3 />
