Answer:
a. Salary for the second year:
Salary is to increase by 4% in second year.
= 53,000 * (1 + 4%)
= $55,120
b. Third year salary:
Second year salary will increase by 5.5%
= 55,120 * (1 + 5.5%)
= $58,151.60
c. Fourth year salary:
Third year salary to increase by 11.1%
= 58,151.60 * (1 + 11.1%)
= $64,606.43
Answer:
Simple Interest=P*r*n= $20 million * 0.18 * 1= $3.6 million
Therefore amount accumulated= $20 million + $3.6 million = $23.6 million
Amount accumulated through Compound Interest=P×(1+r) ^t
= $20 million( 1+0.18/12)^12= $23.912 million
Explanation:
Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period.
Answer: B - a general improvement in technology affecting production of all goods
Explanation: The Production Possibility Frontier is a curve that shows the two combination of goods an economy can produce when all its factors of production are efficiently used.
Technological progress shifts the curve outward, away from the origin as more output would be produced using the same combination of factor inputs.
Shifting of resources from butter to gun would lead to movements along the curve as more gun would be produced and less butter.
Pacifism becoming less popular which increases gun production, would cause movement along the curve.
Increase in consumer desire for butter increase the amount of butter produced . This would generate a movement along the curve
Answer:
$1350
Explanation:
To find dead weight loss we will take into consideration the price and output level of both monopoly and perfect competition.
Dead weight loss = {(P2 - P1) * (Q1-Q2)} / 2
Where, P2 and Q2 are price and quantity respectively of monopolist and P1 and Q1 are price and quantity respectively of perfect competiton.
Dead weight loss = {(130-40) * (60-30)}/2
= (90*30)/2
= $1350
