a) A person plans to deposit 100000 in the first year in his savings account. He reduces his deposit amount by 2000 thereafter for next 12 years. The bank gives 7.5% interest compounded annually. Find the maturity value of the deposit.
a) A person plans to deposit 100000 in the first year in his savings account. He reduces his deposit amount by 2000 thereafter for next 12 years. The bank gives 7.5% interest compounded annually. Find the maturity value of the deposit.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![a) A person plans to deposit 100000 in the first year in his savings account. He reduces his
deposit amount by 2000 thereafter for next 12 years. The bank gives 7.5% interest
compounded annually. Find the maturity value of the deposit.
b) Given the market demand and supply curve of a product
Q = 10000 -P (Demand)
Q 9000 + 4P (Supply)
(i) Find the equilibrium price and quantity
(ii) If a GST of 20 per unit is imposed on the product find its effect on the equilibrium price. Is
the buyer less elastic? Why?
(iii) Draw a suitable diagram to demonstrate the effect of the GST on the price of the product.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F551c9aa6-dbfc-4ead-a9e7-ade555e2e075%2F54fc0496-4fd7-421b-9d7a-243131fad840%2F1em8vdo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a) A person plans to deposit 100000 in the first year in his savings account. He reduces his
deposit amount by 2000 thereafter for next 12 years. The bank gives 7.5% interest
compounded annually. Find the maturity value of the deposit.
b) Given the market demand and supply curve of a product
Q = 10000 -P (Demand)
Q 9000 + 4P (Supply)
(i) Find the equilibrium price and quantity
(ii) If a GST of 20 per unit is imposed on the product find its effect on the equilibrium price. Is
the buyer less elastic? Why?
(iii) Draw a suitable diagram to demonstrate the effect of the GST on the price of the product.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education