How much should be deposited now

Assignment Help Microeconomics
Reference no: EM13118950

An individual wishes to deposit an amount of money now and $100 every six months so that at the end of five years they have $1500. With interest at 4% per year, compounded semi-annually, how much should be deposited now?

Ann would like to be a millionaire when she retires in 30 years. She would like to start with a deposit of $1000 at the end of the first year, and increase it every year by $400 thereafter. What interest rate does she need to get to be able to retired as desired?

A company uses MACRS depreciation. It has decided to purchase a mainframe computer and would like to know the depreciation schedule. You have the following data: Initial cost = $550000, Salvage value = $50000 and Property Class = 5 yr. Build a table with the MACRS% , Depreciation, Book and the Accumulated Depreciation values, $.

Amy wants to buy the house next to John. If the cost is $450,000, and she has $80,000 for a down payment, should she take out a 15 yr loan at 6% (LOAN A) or a 20 yr loan at 2% (LOAN B)? The criteria is she wants the loan that will have the LEAST interest paid over the life of the loan.

176_deposit an amount of money.png

Reference no: EM13118950

Questions Cloud

What sampling method was used to select freshman : Survey was mailed to a total of 400 students; 100 were randomly selected from each of the freshman, sophomore, junior and senior classes last semester. What sampling method was used?
What is the 95% confidence limit for males : What is the 95% Confidence Limit for males.
Explain the marginal value theorem : Explain the marginal value theorem and its key assumptions. How might incorporating (a) state-dependent learning; (b) constraints on spatial memory change those assumptions?
Develop forecast of enrollment using exponential smoothing : Develop a forecast of enrollment next semester using exponential smoothing with a a= 0.2. Assume that an initial forecast for the first semester was 120 (so the forecast and the actual were the same.)
How much should be deposited now : What interest rate does she need to get to be able to retired as desired and compounded semi-annually, how much should be deposited now?
What is red queen evolution : What is Red Queen evolution and how does it apply to the search images of predators and the camouflage patterns of prey? Discuss in the context of specific experimental studies.
Will the required sample size be larger or smaller : suppose that in the setting of the previous exercise you are willing to settle for a margin of error of $1000. will the required sample size be larger or smaller?
Define heritability and explain the difference : Define heritability and explain the difference between saying a trait is heritable and saying it's genetically determined. Why is heritability very low for many traits that are important to survival and reproduction?
Estimate reasonable cost estimate : Using this he gives a cost estimate of $24,000 for a new order for 500 units. Is this a reasonable cost estimate? Explain why or why not. Looking at the data on file, can you give a better cost estimate?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd