Answer:
c. $0.70.
Explanation:
The consumer surplus is determined by subtracting Equilibrium price from willing price
Here there are 3 willing prices which are greater than Equilibrium price. The price to buy the forth can is $0.40 which is below the equilibrium price of $0.55, so he will not buy the forth can.
Willing price for first can (W1) = $0.95
Willing price for second can (W2) = $0.80
Willing price for third can (W3) = $0.60
The Equilibrium price (E) is $0.55
Consumer Surplus = (W1 - E) + (W2 - E) + (W3 - E)
Consumer Surplus = ($0.95 - $0.55) + ($0.80 - $0.55) + ($0.60 - $0.55)
Consumer Surplus = $0.40 + $0.25 + $0.05
Consumer Surplus = $0.70.
Answer:
Monthly payments = $1,234.54
Explanation:
given data
Future value = $1,000,000
time = 25 year = 25 × 12 = 300 months
rate = 7 % annual = 
= 0.5833% monthly
to find out
Monthly payments
solution
we will apply here future value formula that is express as
Future value = Monthly payments × 
..........1
put here value we get
Future value = Monthly payments ×
1,000,000 = Monthly payments × 
solve it we get
Monthly payments = $1,234.54
The effective compound interest rate is 13.87%.
<h3><u>
What is Compound Interest?</u></h3>
- The interest on a loan or deposit that is calculated based on both the initial principle and the accumulated interest from prior periods is known as compound interest (also known as compounding interest).
- Compound interest, sometimes known as "interest on interest," is said to have its roots in 17th-century Italy. Compared to simple interest, which is calculated solely on the principal amount, it will cause a sum to grow more quickly.
- The frequency of compounding determines the rate at which compound interest accumulates.
- The compound interest increases with the number of compounding periods.
- For instance, during the same period of time, the amount of compound interest accrued on $100 compounded at 10% yearly will be less than $100 compounded at 5% semi-annually.
Nominal = interest rate
That is Nominal rate is also known as interest rate.
Nominal rate = 13.20%
The invested money is compounded quarterly.
Periodic = 13.2%/4 (quarterly)
Periodic rate = 3.30%
Now,
The interest rate that accounts for compounding over a specific time period is called the Effective Annual Interest Rate (EAR). The rate of interest that an investor can earn (or pay) in a year after taking into account compounding is known as the effective annual interest rate, to put it simply.
Effective annual rate = EFF% = [1 + (0.13200 / 4)]⁴ - 1 = 13.87%
Know more about Compound Interest with the help of the given link:
brainly.com/question/14295570
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Answer:
see below
Explanation:
Endorsing a check is communicating to the bank how a check is to be cashed. A restrictive endorsement puts limits on how a check or other financial instruments are to be used.
The most common type of restrictive endorsement is for the payee to write the words" for deposit only" at the back of the check. The payee then signs and indicates their account number. This instructs the banks to pay the check amount to that account.
Sandra walker should write the words "for deposits only" at the back of the check. She has to indicate the bank account number for The Book Nook and sign at the back.
Answer:
The correct answer is letter "B": interest payments that vary by the yield to maturity each year.
Explanation:
Bonds are investments in the form of loans that companies provide. The firm pays investors a coupon yield, which is the annual or semiannual interest paid on the principal of the bond purchased. The payments continue until the bond reaches its maturity or the amount of the principal is completely paid off.
