9- if you invest 400 every six month for 10 years with interest rate of 12% per year compounded monthly, then the accumulated value after 10 years equals to a. $14,957 b. $15.705 c. $15,331 d. $17,090 c. $20,000
9- if you invest 400 every six month for 10 years with interest rate of 12% per year compounded monthly, then the accumulated value after 10 years equals to a. $14,957 b. $15.705 c. $15,331 d. $17,090 c. $20,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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#### Question 10
The equation of the price is:
- a. \( p = 50 - 0.0016D \)
- b. \( p = 44 - 0.0044D \)
- c. \( p = 42 - 0.0074D \)
- d. \( p = 30 - 0.0036D \)
- e. \( p = 35 - 0.0025D \)
#### Question 11
If the equation of the price is \( p = 50 - 0.002D \), and knowing that the demand which gives maximum profit is 4000 units, then the variable cost per unit is:
- a. 34
- b. 38
- c. 18
- d. 42
- e. 30
#### Question 12
For a certain product, if each 1000 units consumes $5000 of raw materials and a rental cost of $2000 is paid yearly, then the total cost equation can be written as:
- a. \( C_T = 2000 + 5D \)
- b. \( C_T = 7000 + 5D \)
- c. \( C_T = 5000 + 2D \)
- d. \( C_T = 2000 + 6D \)
- e. \( C_T = 1500 + 7D \)
#### Detailed Explanation of Graph
The graph provided illustrates the relationship between demand, cost, and revenue. The x-axis represents "Demand (Volume)" while the y-axis represents "Cost and Revenue".
- The Total Revenue (TR) curve is a parabola that peaks at a point, indicating maximum revenue.
- The Cost (CT) curve intersects the TR curve, indicating various levels of cost at different demand volumes.
- The Fixed Cost (CF) is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c47eb58-11c8-4f3d-a446-35857f47e26f%2F4531bb9b-7d0d-47f5-a496-7bb4380cffe6%2F9oj3k8h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Financial Mathematics and Economics Practice Problems
#### Question 9
If you invest $400 every six months for 10 years with an interest rate of 12% per year compounded monthly, then the accumulated value after 10 years equals to:
- a. $14,957
- b. $15,705
- c. $15,331
- d. $17,090
- e. $20,000
#### Consider the following figure to answer the following two questions:
#### Question 10
The equation of the price is:
- a. \( p = 50 - 0.0016D \)
- b. \( p = 44 - 0.0044D \)
- c. \( p = 42 - 0.0074D \)
- d. \( p = 30 - 0.0036D \)
- e. \( p = 35 - 0.0025D \)
#### Question 11
If the equation of the price is \( p = 50 - 0.002D \), and knowing that the demand which gives maximum profit is 4000 units, then the variable cost per unit is:
- a. 34
- b. 38
- c. 18
- d. 42
- e. 30
#### Question 12
For a certain product, if each 1000 units consumes $5000 of raw materials and a rental cost of $2000 is paid yearly, then the total cost equation can be written as:
- a. \( C_T = 2000 + 5D \)
- b. \( C_T = 7000 + 5D \)
- c. \( C_T = 5000 + 2D \)
- d. \( C_T = 2000 + 6D \)
- e. \( C_T = 1500 + 7D \)
#### Detailed Explanation of Graph
The graph provided illustrates the relationship between demand, cost, and revenue. The x-axis represents "Demand (Volume)" while the y-axis represents "Cost and Revenue".
- The Total Revenue (TR) curve is a parabola that peaks at a point, indicating maximum revenue.
- The Cost (CT) curve intersects the TR curve, indicating various levels of cost at different demand volumes.
- The Fixed Cost (CF) is
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