You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: receive $2,000 five years from now. The interest rate is 15 percent. Rank these three options from highest present value to lowest present value. a. Option 1; Option 2; Option 3 b. Option 3; Option 2; Option 1 c. Option 2; Option 3; Option 1 d. Option 3; Option 1; Optio
Q: My homework help What happens in the market for beach towels now that the season is over. Graph and…
A: Demand basically refers to the quantity of goods or services that a consumer is willing and able to…
Q: An economy operates with firms that have the Cobb-Douglas production function Y = 2K 0.4L0.6 - The…
A: Given the Cobb-Douglas production function:Y=2K0.4×L0.6
Q: The table shows the 1 manicures What Cake's total is hy when she buys 4 manicures What is the…
A: Utility is the wants satisfying power of a good or service. Total utility is the total amount of…
Q: The price of gasoline is usually a lot higher at gas stations located very close to a highway than…
A: The elasticity of demand(Ed) measures how sensitive the quantity(Q) demanded of a good is to an…
Q: Price (dollars per pizza) 20 18 16 12 10 8 6 4 2 S+ tax on sellers S 0 10 20 30 40 50 60 70 80 90…
A: Equilibrium is the unstable condition that allows for market adjustment. Pricing stability is…
Q: Use the data below to answer the ensuing questions. Show your work. (5% each)Item ValueUnemployment…
A: Unemployment refers to those unemployed people who are unemployed and actively seeking work or…
Q: 1 True/false questions Give a one sentence justification. 1. Adjusting for purchasing power parity…
A: The objective of the question is to determine which country, India or Brazil, has a higher price…
Q: the Fed, and th es loans to Stev k. 2nd National account at 3rd M oply in this econ
A: In the economy, there is a sale of bonds worth $1000 to the Fed. This means the Fed bought the bonds…
Q: O Macmillan Learning Price Controls and Quotas - End of Chapter Problem The Venezuelan government…
A: The demand curve represents the quantity demanded by consumers at different price levels.The supply…
Q: Give me proper calculation with correct answer Note:- Please avoid using ChatGPT and refrain from…
A: The objective of the question is to calculate the Gross Domestic Product (GDP) of an economy given…
Q: In economics the circular flow model illisytates what
A: The objective of the question is to understand the concept of the circular flow model in economics.
Q: Country A's real GDP per capita is given by &y=8k and has a capital per capita.k = 22,500. Suppose…
A: Real GDP per capita is a measure that reflects the average economic output per person in a country,…
Q: The Brain Bucket Company (BBC) produces helmets for winter sports. It has production facilities in…
A: Given,The production function for the Toronto facility is-The production function for the Winnipeg…
Q: Military Defense is a public good. The cost (supply) of each "unit" of military defense is P=3.…
A: The objective of the question is to find the socially optimal allocation of military defense. This…
Q: NAFTA is a trade agreement that was negotiated by the leaders of three countries. Which of the…
A: The question is asking to identify the country that was not a part of the North American Free Trade…
Q: A friend has just started up her own business. Her firm asks you how much to charge for her product…
A: The profit-maximizing level of output for her product is 40.She will earn $80 in…
Q: A small business earns a baseline profit of $500 a year for 5 years. In addition, its profits…
A: The objective of the question is to find the cash flow of the business in the 4th year. This can be…
Q: The offer curves of Nation 1 and Nation 2 are shown in Fig. 4.4 Figure 4.4 Nation 1 Ps Nation 2…
A: The offer curve plays an important role in the branch of international trade as it helps in the…
Q: C(Q) = 80+ 20Q+25Q² +5Q³. Based on this information, determine the following: a. The fixed cost of…
A: Economics refers to the study of scarcity and its implications for the use of resources, production…
Q: With rregards to Modern Theories of Interest Rates and Their Application to the Caribbean Region,…
A: The essential concern spins around understanding how current theories of interest rates make sense…
Q: 1. Consider the over-shooting model we studied in class and under PPP with sticky prices. There are…
A: The objective of the question is to understand the initial equilibrium of the currency market for…
Q: An externality arises when a firm or person engages in an activity that affects the well-being of a…
A: The benefit or cost of an economic activity incurred on a third party who is not involved in the…
Q: 4. Demand shifters The following graph shows the market demand for kumquats. Suppose that government…
A: A demand curve is a graphical representation of the relationship between the price of a good or…
Q: Macmillan Learning Assume that we are looking at the egg market and presently the equilibrium price…
A: Market equilibrium refers to a scenario at which the quantity demanded is equal to the quantity…
Q: Show the impact of the decrease in the price of chicken by shifting the demand curve on the…
A: A demand curve is a graphical representation of the relationship between the price of a good or…
Q: Why would consumers prefer that the government tax products with elastic, rather than inelastic,…
A: Tax is a mandatory payment to the government. The tax amount is spent on the economy through public…
Q: In regards to Modern Theories of Interest Rates and Their Application to the Caribbean Region, what…
A: Yield Curve: Yield Curve is a graphical representation of the relationship between the interest…
Q: Instructions: In part a, round your response to one decimal place. In part b, enter your response as…
A: The unemployment rate(U) measures the of the labor(L) force who are without a job but actively…
Q: Hand written solutions and AI solutions are strictly prohibited
A: The objective of the question is to create a mathematical model that represents the relationship…
Q: 4. Study Questions and Problems #4 The following graph shows the supply curve for condominiums in a…
A: The supply curve represents the relationship between the price of a good or service and the quantity…
Q: Suppose the following graph shows the current market supply for coffee. Firms expect the price of…
A: Supply:Supply is the total number of goods and services produced by a producer is called supply.…
Q: The market for pencils has a domestic demand equation P=20−0.5Q�=20−0.5�, and a domestic supply…
A: The objective of the question is to find the new domestic price of pencils after the implementation…
Q: Suppose that the currency ratio is 0.2, the required reserve ratio on deposits in M1 is 0.1, the…
A: The percentage of funds that commercial banks must retain in reserves as mandated by regulatory…
Q: This is a two part discussion Read about Nudge https://en.wikipedia.org/wiki/Nudge_theory Also if…
A: Nudge theory is a way of thinking about how small changes can help people make better decisions.…
Q: 18. Jake and Gonzalo are roommates and have saved a total of $360 to spend on summer entertainment.…
A: Given below solution Explanation:Approach to solving the question: Detailed explanation: Examples:…
Q: going president next year. Currently Ann is the president. Each member is both a candidate and a…
A: Game theory is a mathematical discipline commonly applied to the analysis of interactive strategic…
Q: 4 Mathematical Malthusian Model This question is about determining if the Malthusian trap still…
A: Here due to multible question i will solve first one.So, here we r going to analyse the the marginal…
Q: Chapter 05 Homework PRICE (Dollars per pound) 12 11 10 9 2 1 0 B I A Demand 0 10 20 30 40 50 60 70…
A: Price elasticity of demand measures the percentage change in the quantity demanded of a good or…
Q: Which one the following statements is correct? A. In a subgame perfect Nash equilibrium of the…
A: Bertrand Duopoly: In a Bertrand duopoly, two firms compete on price. If both firms have the same…
Q: The city of Pueblo, CO recently passed a bill to subsidize homebuyers by assisting with their…
A: Here we have see the impact of Subsidy.Subsidy: The subsidy is a financial aid extended to an…
Q: Tim put $275 in the bank one year ago and forgot about it. Today, the bank sent Tim a statement…
A: The objective of the question is to find out the interest rate that Tim earned on his bank deposit…
Q: 280 View Policies Current Attempt in Progress Carla Vista Company took a physical inventory on…
A: The objective of the question is to determine the value of the inventory that Carla Vista Company…
Q: In economics the circular flow model illisytates what
A: The objective of the question is to understand the concept of the circular flow model in economics.
Q: The inverse demand function for a homogeneous product Stackelberg duopoly is P = 18, 000 − 5Q. The…
A: (Note: “Since you posted a question with multiple sub-parts, we will provide the solution only to…
Q: Most societies are driven to make a profit. What is profit? Profit is the…
A: The objective of the question is to define the term 'profit' in the context of economics.
Q: Question 2 A project is said to "pass" a benefit/cost test if: O the net present value of benefits…
A: A project is a temporary endeavor to undertake a good or service, to create value in the future. It…
Q: answer questions 1 and 2
A: Look at the detailed analysis of the two question sin the explanation section below;Explanation:1.…
Q: Vault cash is included in which of the following measures of the money supply of the United States?…
A: Money supply basically refers to the amount of total money that is in circulation in the economy at…
Q: What is the present worth of a $700 payment that occurs at the end of year 1 and repeating yearly…
A: Present value is the sum of money that has been discounted from a certain future value or from a…
Q: Figure 10.5 Does public insurance crowd out private insurance? In Panel A, the introduction of…
A: Public insurance is known as government insurance. The insurance programs are administered and…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- 3) Brian won the state lottery grand prize of $5 million. The lottery offers him two options: five annual payments of $1 million, starting this year, or one lump sum payment of $4.5 million right away. (a) If the interest rate (discount rate) is i = 5%, what is the present value of the prize if Brian choose the five annual payments? Which option should he choose? (b) If the interest rate (discount rate) is i = 10%, what is the present value of the prize if Brian choose the five annual payments? Which option should he choose?An oil company is considering drilling in the Gulf at a current cost of $400,000 with an expected profit of $500,000 in three years. The current market rate of interest is 10 percent. Should the company make the investment? Multiple Choice No, the present value of the profit is less than the present value of the cost.. No, the future value of the profit is less than the present value of the cost. Yes, the present value of the profit is greater than the present value of the cost.. Yes, the future value of the profit is greater than the present value of the cost.1. How much is the total value of all these presents worth today?2. How much is the future value of all these presents at the end of 12 years?3. If Tita Rhea agrees to give her these amounts annually forever, how much is its total value worth today?4. If the presents are each made continuously throughout the year at a rate of P, multiply the present value in #7 by a suitable adjustment factor (d/δ) to determine its total present value. Type the resulting amount below.
- 11)Eva is saving money for a vacation she wants to take five years from now. If the trip will cost $1,000 and she puts her money into a savings account paying 3 percent interest, compounded annually, how much would Eva need to deposit today to reach her goal without making further deposits? Group of answer choices $961.54 $932.75 $862.61 $821.93Which plan is the least expensive. The interest rate is 12% Plan A: $50,000 down payment (time zero) and equal payments of $25,000 for 20 years. Plan B: $0 (nothing of down payment) and equal payments of $31,000 for 20 years. Plan C: $100,000 of down payment and equal payments of $21,000 for 20 years. a. All are the same b. Plan B = $231,550 c. Plan C = $267,230 d. Plan A = $236,740Benjamin receives an annual bonus of $1,000 and wants to invest it in an account that earns interest for the next 3 years. Below are the two options that he is considering putting his money into. Which of the following statements is true? NEED ASAP PLS. Benjamin receives an annual bonus of $1,000 and wants to invest it in an account that earns interest for the next 3 years. Below are the two options that he is considering putting his money into. Which of the following statements is true? Bank A 5% Simple Interest Bank B 5% Interest Compounded Annually Simple Interest: /= Prt; Compound interest A=P(1+r): After 3 years, Bank B will pay Benjamin $1875 more than Bank B. After 3 years, Bank B will pay Benjamin $3000 more than Bank A. After 3 years, Bank B will pay Benjamin $1007.63 more than Bank A. After 3 years, Bank B will pay Benjamin $7.63 more than Bank A. After 3 years, Bank A will pay Benjamin $10.13 less than Bank B.
- Explain Present-Worth Analysis?What is the present value of $6,000 to be received 15 years from now if the interest rate is 15 percent? Multiple Choice O $400 $48,822.37 $737.37 $5,217.39As time to expiration of an option is increased, with all else being equal, A. The price of the option will decrease B. The price of the option will increase C. The price of the option will not change D. The price of the option may increase or decrease depending on the underlying asset
- After graduation, you face a choice. One option is to work for a multinational consulting firm and earn a starting salary (benefits included) of $40,000. The other option is to use $7,000 in savings to start your own consulting firm. You could earn an interest return of 7 percent on your savings. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your total includes $10,000 in rent, $1,000 in office supplies, $24,000 for office staff, and $3,500 in telephone expenses. Explicit costs include all costs for which direct payments are made Rent ($10,000), office supplies ($1,000), staff salaries ($24,000), and telephone ($3,500) = $ Implicit costs include opportunity costs: foregone wages ($40,000), and foregone interest payments ($7,000x7%) = $ Suppose, that you have now operated your consulting firm for a year. At the end of the first year, your total revenues are $78,000 Your accounting profit is $ Your economic…After graduation, you face a choice. One option is to work for a multinational consulting firm and earn a starting salary (benefits included) of $40,000. The other option is to use $6,000 in savings to start your own consulting firm. You could earn an interest return of 5 percent on your savings. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your total includes $9,000 in rent, $850 in office supplies, $18,000 for office staff, and $3,500 in telephone expenses. Your explicit costs are $ Your implicit costs are $You own a 10-acre blueberry farm. You could farm the land yourself or rent it out for $7,000 per year. Another option is to sell the land this year at its current market price of $80,000. The price of the land next year will be $78,000. If you sell it, your group has an investment opportunity from which you expect to make a return of 6 percent per year. What is the opportunity cost to you of using the land to grow blueberries for a year? O a. $2,000 Ob. $4,800 Oc. $5,000 O d. $9,800