Calculate rental price of capital, Macroeconomics

Assignment Help:

Let the real interest rate, ir, equal 5 percent and the rate of depreciation, d, equal 10 percent.  In this case, if the price of a piece of capital is PK = $10,000, what is the rental price of capital, RK?

 


Related Discussions:- Calculate rental price of capital

Classical model, why and how is price level determined by the monetary sect...

why and how is price level determined by the monetary sector in the classical model?

What is meant by the term national debt?, When a government spends more tha...

When a government spends more than it receives in taxes; it runs a budget deficit, which is generally covered by issuing debt obligations to domestic and/or international investors

Influence the risk accompanying long-term contracts, What impact will high ...

What impact will high and variable rates of inflation have on the economy? How will they influence the risk accompanying long-term contracts and related business decisions?

Balance of payments, state and explain two factors that cause the shifts in...

state and explain two factors that cause the shifts in the balance of payments curve.

Inflation in germany, Once we have monthly data on a price index we can eva...

Once we have monthly data on a price index we can evaluate the inflation. In most nations, the percentage change in price index during one month is small. Hence it is more common t

The short-run macroeconomic equilibrium, The figure below defines an econom...

The figure below defines an economy's aggregate demand curve and its short-runand long-run aggregate supply curves (labelled AD, SRAS, and LRAS, respectively). practically,the econ

Geometric gradient series, Determine the present worth of a geometric gradi...

Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The interest rate is 10% per year.

Survivor Island, the central economic problem facing the group of survivors...

the central economic problem facing the group of survivors

Health care cost of capital, In 2004, Olentangy health care cost of capital...

In 2004, Olentangy health care cost of capital was 6%. Its investments on a historical cost valuation basis are $80,000; on a replacement cost basis are $100,000. And on a current

Firm wants to sell goods, If a firm wants to sell goods more often, would t...

If a firm wants to sell goods more often, would they prefer to produce a high quality good that will not wear out or one that will wear out faster. For example, what is the 'life e

Write Your Message!

Captcha
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