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Answer the following questions:
a) The monthly effective interest rate, /m, has been determined to be 2%. Calculate how much can be spent now to avoid future computer software maintenance expenses of $1,000 per quarter for the next 5 years.
b) What is the future worth of a continuous flow amounting to $10,500 per year when the nominal interest rate is 15% per year compounded continuously, and n = 12 years?
A local church parish wants to raise money to add to their campus. In a sample from a previous fund raising campaign, the parish found that of the 136 people in the sample they contacted, that 67 actually contributed money. When testing (at the 5% le..
Stan Money maker needs 16 gallons of gas to top off his tank. I he drives an extra 8 mile round trip Stan can save an extra $0.05 a gallon. Suppose gas costs $3.10 per gallon and Stan gets 24mpg. Each mile driven gives off CO2 that has an environment..
Our recent recession seems to demonstrate again that expenditures and incomes depend on each other. If markets do not self adjust, how can a decline in spending lead to a negative process that ruins an economy? (Consider referencing the "Keynesian Cr..
Carefully explain the difference between the marginal rate of substitution and the marginal rate of transformation. Be sure to explain the economic meaning of each of these terms. What value does each of them take? (Answer should be in terms of margi..
Draw the budget line on the Edgeworth box through the endowment point. What is the equilibrium allocation?
Ted’s utility function characterizing preferences over apples and bananas is U a,b= 4a + 6b^2. . How many apples does Ted demand if Pa= .5 and Pb=1 , and he has $10 to spend?
If the price level remains constant by Explain how more will real output increase.
Indicate the following transactions entered in to the U.S balance of payments with double-entry book keeping.
Are the Britannica on paper and the Britannica on CD close substitutes? What about the Britannica on CD and the Encarta on CD?
Mandy Marguerita lives two periods. Her initial accumulated wealth (W) in period 1 (inherited from Mom) is $ 20, and her income in period 1 is $ 90. Her income in period 2 is $ 110. Mandy does not leave bequests to her children (couple of deadbeats) ..
A copier company want to expand production. It currently has 20 workers who share eight copiers. 2 months ago the firm added 2 copiers, and output increased by 100,000 pages per day. One month ago, they added 5 workers and productivity also increased..
Use the Internet and any other available sources to gather information on the company. Research the strategies the company is using to achieve a competitive.
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