Answer:
Maximum amount to be paid = $ 11,978.13
Explanation:
<em>This is an example of an annuity . </em><em>An annuity </em><em>is a series of periodic equal cash inflows or cash outflows occurring for certain number of years.</em>
<em>The maximum amount to be paid would be the present value (PV) of the cash flows discounted at the required rate of return of 8%</em>
This would be be done using the formulae below:
PV = A × 1 - (1+r )^(-n)/r
A- 3000 r - 8%, n - 5
PV = 3000× 1 -(1.08^(-5))/0.08
= 3000 × 3.9927
= $ 11,978.13
Maximum amount to be paid = $ 11,978.13
Answer: b. Treasury Notes
Explanation:
The question is a bit confusing to answer unless a mistake has been made in it.
Treasury Notes are Federal obligations that mature between 2 - 10 years so would be the correct answer for this question as this would include bonds in excess of five years till the 10th year.
Treasury Bonds on the other hand mature after 10 years.
If there is a mistake in the question and you instead meant to write 10 years instead of 5, the answer would be Treasury Bonds.
If not, the answer is Treasury Notes.
Answer:
The correct answer is letter "B": $5 million.
Explanation:
Marginal Propensity to Consume (MPC) is a measure of how much consumption changes when income changes. MPC is calculated by dividing the change in consumption by the change in disposable income. Disposable income is the money households have available after deducting their expenses and taxes.
Thus, in the example:
<em>5,000,000 = </em><em>Change in consumption</em>
<em />
Then, <em>the change in consumption is $5 million.</em>
Answer:
3. cannibalization
Explanation:
This term refers to the situation were sales or the market share of a product are reduced because another product is introduced by the same company.
Answer:
The correct answer is option C.
Explanation:
`If firms can easily enter and exit the market, then firms operating in the market will earn zero economic profit in the long run. This is because the short run is too short for firms to enter and exit so potential firms will enter and exit in the long run.
If the existing firms will be having negative profits, the firms having loss will exit the market. This will reduce market supply. As a result, the price level will increase. This will go on until all firms will have zero economic profits.
Similarly, if the existing firms are having positive economic profits in the long run, the other firms will enter the market. This will increase the market supply such that the price level decreases. This will go on till all the firms will be having zero economic profits.
