(8) (a) Fund I grows according to simple interest at rate r. Find the force of interest 8 (D) acting on fund I at time t. (b) Fund D grows according to simple discount at rates. Find the force of interest 8 (D) acting on fund D at time t. (c) Supposer > s. Find all t such that 8(1) = 8 (D). (8) (a) (b) r 1+rt S 1-st r-s (c) 2rs

(8) (a) Fund I grows according to simple interest at rate r. Find the force of interest 8 (D) acting on fund I at time t. (b) Fund D grows according to simple discount at rates. Find the force of interest 8 (D) acting on fund D at time t. (c) Supposer > s. Find all t such that 8(1) = 8 (D). (8) (a) (b) r 1+rt S 1-st r-s (c) 2rs

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 7E

See similar textbooks

Similar questions

The demand function for a product is QD = 1000 - 20P (a). Make a table to show the demand schedule for the product when prices are OMR 0, OMR 10, OMR 20, OMR 30 and OMR 40. (b). Draw a diagram to show the demand curve that represents the demand schedule that you have made. (c). Make a new table to show the demand schedule for the demand function QD = 1000 -10OP when prices are OMR 0, OMR 10, OMR 20, OMR 30 and OMR 40. (d). Add the demand curve that represents the new schedule to the diagram that you drew in part 2. (e). Explain two factors that might have caused the change in the slope of the original demand curve.
Which of the following bond has the best value to an investor to buy? a) A 5 percent coupon bond priced at $1,000 b) A 10 percent coupon bond priced at $1,000 c) A 15 percent coupon bond priced at $1,000 d) A 20 percent coupon bond priced at $1,000 e) A zero-coupon bond priced at $1,000 22 645
The Fly-by-Night finance company advertises a "bargain 6% plan" for financing the purchase of automobiles. To the amount of the loan being financed, 6% is added for each year money is owed. This total is then divided by the number of months over which the payments are to be made, and the result is the amount of the monthly payments. For example, a woman purchases a $10,000 automobile under this plan and makes an initial cash payment of $2,500. She wishes to pay the $7,500 balance in 24 monthly payments: Find the IRR and Effective Annual Interest rate. Purchase price -Initial payment = Balance due, (Po) +6% finance charge = 0.06 × 2 years × $7,500 = Total to be paid .. Monthly payments (A) = $8,400/24 = $10,000 2,500 7,500 900 8,400 $350
1. Consider a wine dealer who has k bottles of wine. The dealer can sell them now (t = 0) or can store it for some time and then sell them later. The value of k bottles at t-th month is given by: Vt = ket The dealer can use the sales revenue as principal in a risk-free investment at rate r. (a) If the dealer sells them now, what is the sales revenue?
You purchased a bond with a face value of $5,000 five years ago for $4,750. The bond pays a coupon rate of 4%, paid every 2 months (6 times a year). If you want an annual yield of 6% from the bond, how much should you sell the bond for now? Question 6 Part B: Identify the correct Function Notation for this scenario.
Suppose that $500 is invested at the end of every year for 5 years. The polynomial function that models the value of the investment is P(x) = 500x5 + 500x4 + 500x³ + 500x² + 500x, where x represents the effective interest rate plus 100%. One year after the last payment, the investment is worth $3200. Find the effective interest rate one year after the last payment, to the nearest tenth. (Note: You will need to subtract 1 from the value of x to find the effective interest rate.)
None
How would I go about solving this question?
[1] A manufacturer plans to introduce a new type of shirt based on the following information. The selling price is $35.00; variable cost per unit is $15.00; fixed costs are $8200.00; and capacity per period is 740 units. a) Calculate the break-even point (i) in units (ii) in dollars (iii) as a percent of capacity b) Draw a detailed break-even chart. c) Calculate the break-even point (in units) if fixed costs are reduced to $7000.00 d) Calculate the break-even point (in dollars) if the selling price is increased to $40.00 ANSWER WITH PROPER SOLUTIONS PLEASE
A manufacturer plans to introduce a new type of shirt based on the following information. The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units. a) Calculate the break-even point (i) in units (ii) in dollars (2 decimal places) (iii) as a percent of capacity b) Draw a detailed break-even chart. (You do not have to submit this part; just draw it for your own practice.) c) Calculate the break-even point (in units) if fixed costs are reduced to $7020.00 d) Calculate the break-even point (in dollars) if the selling price is increased to $78.00
(3) Suppose we invested $20,000 at an annual rate of 5% where interest is compounded continuously. (a) Write down an IVP that describes the amount of money y(t) that you will have in your account after t years. Then, solve the IVP and compute how much money you expect to have in your account after 10 years. (b) Now suppose you want to have $100,000 in your account after those 10 years. In order to accomplish that, you will make yearly deposits of D dollars. Find D, so that y(10) = $100,000. Note that we still have y(0) = $20,000.
Suppose you started a savings account and put $70 in the bank and left it there for 1 year. Also assume you put no other money in that account. If the annual interest rate is R = 0.05 (5%), then at the end of the year you would have how much in your account at the end of the year? Group of answer choices A) $73.50 B) $70.50 C) none of the other options. D) $75 E) $72.80