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A young man has decided to go into business at age 40. He wishes to accumulate BD 200,000 at that age. On his twenty fifth birthday he deposited a certain amount and will increase the deposit by 10% each year until the fortieth year. If the funds can be invested at 9.6% compounded annually, how much should his initial investment be?
The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price of luxury boats is $1 million and 240 luxury boats a week are brough. now luxury boats are taxed at 20 percent..
Find a current event article (dated within the last 6 months) that addresses fiscal policy issues in the United States today. Explain the problem and the recommended strategies being debated.
Suppose that the price of a stock is $50 at the beginning of a year and $53 at the end of the year, and it pays a dividend of $2 during the year. Calculate the stock's current yield, capital-gains yield, and the return.
a. Compute the quantity sold and elasticity at a price of $1, and also at a $2 price, assuming the given advertising budget. b. What is the advertising elasticity at a price of $2 Give an interpretation of the advertising coefficient.
Explain in words how and why the multiplier G and the interest sensitivity of aggregate demand affect the slope of the IS curve.
Evaluate Eskoms products in terms of the availability of close substitutes
What is the opportunity cost of an additional unit of the composite good?
You would like to estimate the effect of police size on city-level crime on a cross-section of cities. Does the estimated 0 coefficient mean that police size has no effect on crime? What assumptions should a valid IV satisfy in this case
Suppose households save 5 percent of their disposable income. If the government increases expenditures and taxes by $100 billion, by how much will saving decline? By how much will consumption decline? What happens to investment? (Assume a closed e..
A delivery truck costs $30,000 and has a salvage value of $5,500 after 6 years. Maintenance and operating costs are $8,500 for the first year and are expected to increase at 6% per year. What is the equivalent annual cost of owning and operating t..
The patent on Zatab expires next month, and dozens of pharmaceutical firms are prepared to enter the market with identical generic versions of Zatab. What price and quantity will result once the patent expires and competition emerges in this marke..
1985/the cocacola comp was faced with soaring prices for sugar cane, 1-cent increase in the price of sugar cane raised its total cost by$20million.Rather than raise the price, comp looke for a cheaper input and replced cane suger with corn sugar.
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