Reference no: EM132571141
PMATH-I-II Arithmetics - International Maritime College Oman
Question 1.
Suppose that over a seven-year period. $1000 accumulated to $1835 in an investment certificate in which interest was compounded monthly. Find the nominal rate of interest, compounded monthly, that was earned. Round your answer to two decimal place. Elaborate (means show in detail) your working neatly and clearly.
Question 2.
The premiums on an insurance policy are $50 per quarter, payable at the beginning of each quarter. If the policyholder wishes to pay one year's premiums in advance, how much should be paid, provided that the interest rate is 4% compounded quarterly? Elaborate (means show in detail) your working neatly and clearly.
Question 3.
If the consumption function is given by
C = 5(2√I3 + 3)/(I + 10)
(a) Determine the marginal propensity to consume.
(b) Determine marginal propensity to save when I = x where choose the value of x from 90 to 110.
Question 4.
For a particular urban group, sociologists studied the current average yearly income y (in dollars) that a person can expect to receive with x years of education before seeking regular employment. They estimated that the rate at which income changes with respect to education is given by
dy/dx = 100x3/2 4 ≤ x ≤ 16
Where y = 28720 when x = 9. Find y.
Question 5.
If the marginal-revenue function for a manufacturer's product is
dr/dq = 5000 - 6q - 6q3
(a) Find the revenue equation when no unit ‘q' are sold.
(b) Find the demand function.
Question 6.
The demand function for a product is given below.
p = 2200 - q2
Where p is the price per unit in dollars for q units, the supply function is given below
p = 400 + q2
Determine the consumer's surplus and producer's surplus under market equilibrium. Elaborate each step of calculation and simplification.
Question 7.
A manufacturer has determined that the marginal-cost function is
dc/dq = 0.003q2 - 0.4q + 40
Where q is the number of units produced. If marginal cost is $27.50 when q = 50 and fixed costs are $5000, what is the average cost of producing q = y units. Where chose the value of y from 80 to 120.
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