A = P (1 + I)^n
40000 = 5000 (1 + 0.07)^n
(1.07)^n = 40000/5000 = 8
ln(1.07)^n = ln8
nln1.07 = ln8
n = ln8/ln1.07 = 30.7...
The best answer is closest to (d) 30.6 years.
Answer:
Cost benefit analysis is usually preferred by economists, due to several reasons.
Explanation:
Not sure the what is the question, but most likely so you don't forget the number because after you read it you will remember till something else occurs such as someone talking or a new song coming on.
Answer:
a. 7.71%
b. $57.57
Explanation:
a. The computation of discount rate is shown below:-
Discount rate = Risk free rate of return + Market Risk Premium × Beta
Here Common stock will have the same market risk as S&P 500 i.e Beta of Common Stock is 1
= 1.5% + 7.6 × 1
= 7.71%
b. The computation of stock price is shown below:-
Stock price = Expected Stock Value at year End ÷ (1+ Discount rate) + Expected Dividend ÷ (1 + Discount Rate)
= $60 ÷ (1 + 7.71%) + $2 ÷ (1 + 7.71%)
= $60 ÷ 1.0771 + 2 ÷ 1.0771
= $55.71 + $1.86
= $57.57
Answer:
<u>Time</u>
Explanation:
There is a trade off between time spent in travelling and engaging into some other activity.
In Economics, Opportunity cost refers to the next best alternative. It represents the foregone benefits of an activity sacrificed in return for another activity.
In the given case, Jane is willing to pay extra online than travel all the way and get the blanket at a much cheaper rate. By doing so, Jane has saved time as well as energy which would've been spent in 50 miles drive.
Consumer decision making process involves the whole process between a consumer identifying his need and ultimately making the purchase.
The given case corresponds to the influence of available time or the time constraint which affects consumer decision making process.
