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The Gentle Warming Company is purchasing a new cooling system. To pay for the system, the company agrees to make 12 installment payments of $8186 per year, beginning at the end of year 1. The company also has to pay a system fee of $2328 that will begin at the end of year 1 and decrease by $199 per year until the system is paid off. How much should the company set aside today to pay for the cooling system if the bank pays 3% per year compounded annually?
For the next two questions we will consider Rimor Bank, which has the following (partial) list of accounts on its balance sheet: Calculate the maximum amount of new money that Rimor Bank can create, by itself.
If a consumer goes to buy an entertainment center at Best Buy for $2,000 and the mpc is .80, what will be the effect on the economy? What if the mpc really turns out to be .75? Why is there such a difference?
In this question, you will explain the impact of employment and unemployment in a free market economy. The country of France legislated the maximum length of a workweek. Every election season, the Affordable Care Act commonly known as OBAMACARE, beco..
Traffic at a certain intersection is 2000 cars per day. A consultant has told the city that traffic is expected to grow at a continuous rate of 4% per year. How much traffic will be expected at the end of 5 years? : P=2k, r=4% continuous comp, n=5, F..
what is the profit-maximizing price of e-books relating to do-it-yourself topics? At the profit-maximizing quantity, what is the average total cost of producing e-books?
The broader measure M2, however, since it encompasses most significant forms of money individuals may hold, resolves the problem. The shifts in asset holdings take place WITHIN the broader measure. That doesn't make it impervious to distortion, but M..
Imagine that you have decided to open a small ice cream stand on campus called "Ice-Campusades." You are very excited because you love ice cream (delicious!) and this is a fun way for you to apply your business and economics skills! Use your knowledg..
Consider three households (i = 1, 2, 3) each with preferences ui(xi , G) = xi × G where xi is the consumption level of private goods by household i and G is the level of public good. Private good costs 1 and public good costs 10. Individuals have inc..
q1. suppose the parliament passes legislation making it more difficult for firms to fire workers e.g. law requiring
The high rates of unemployment and business bankruptcies during the Great Depression of the 1930s caused a dramatic increase in government intervention in the economy of the United States. What was the original intent of this government intervention?..
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor force..
ALS ( labor hrs per unit to produce sausage) = 1 hr per pound. Find hourly wage rate of Home's economy.
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