<span>The value of $70.00 invested each year for five years, at an annual interest rate of 3% is as follows, and assumes the interest is left in the account at the end of each year.
Principal Interest balance at end of year
Year 1 $ 70.00 $ 2.10 $ 72.10
Year 2 $142.10 $ 4.20 $146.30
Year 3 $216.30 $ 6.49 $222.79
Year 4 $292.79 $ 8.79 $301.58
Year 5 $371.58 $11.14 $382.72 - final value at the end of five years</span>
Answer:
A
Explanation:
Optimization using total value calculates the total value of each feasible option and then picks the option with the highest total value.
Optimization using marginal analysis calculates the change in total value when a person switches from one feasible option to another, and the uses these marginal comparisons to choose the option with the highest total value.
Both gives identical answers.
Optimization can be implemented using many different techniques.
One of it, is Total value total benefit - total cost (net benefit).
It translate all cost and benefits into common units, like dollar per month.
Calculate the total net benefit of each alternative.
Pick the alternative with the highest net benefit.
Answer:
She should use;
B. Easement
Explanation:
We can explain each word given as follows;
1. Encumbrance: this is a claim by a non owner to a property. Encumbrance can restrict or limit the usage and transfer of the property to another owner until it is lifted.
2. License: this is a document that gives one the authority or the right to undertake a given activity. The activity is usually professional or business. In case of a professional, the license can be in the form of a practicing license provided by a regulatory body. In the case of a business, a business license can be sought out from the relevant governing authority whose jurisdiction the business falls.
3. Covenant: a covenant is a mutual agreement between two or more parties on a common thing. The covenant is usually formal and can be legally binding.
4. Easement: an easement is a right that is given temporarily by the owner to another individual to enter or access the owner's property. The usage of the property by the non owner must be specific. In general, easements are common especially when dealing with utility companies or in usage of access roads. In our case, the homeowner being the owner of her yard gave an easement to reach a basketball court by granting seasonal permission to cross the yard.
Answer:
b. The economic cost of going to the pub is £40.
Explanation:
The correct option is - b. The economic cost of going to the pub is £40.
Reason -
Economic cost = Cost actually incurred to choose an option + opportunity cost
Now,
We know that
Opportunity cost is the value of next best alternative forgone.
Now,
Net benefits while the person going to Pub = 50 - 30 = £20
Net benefits while the person going to Theatre = 60 - 50 = £10
So,
The opportunity cost = £20 - £10 = £10
∴ we get
Economic cost of going to the Pub= £30 + £10 = £40
Answer:
Periodic payment = $3,881.88 (Approx).
Explanation:
Given:
Present value of annuity = $36,500
Rate = 6.5% = 0.065
Number of payment = 15
Computation:
![Present\ value\ of\ annuity = periodic\ payment[\frac{1-(1+r)^{-n}}{r} ]](https://tex.z-dn.net/?f=Present%5C%20value%5C%20of%5C%20annuity%20%3D%20periodic%5C%20payment%5B%5Cfrac%7B1-%281%2Br%29%5E%7B-n%7D%7D%7Br%7D%20%5D)
![36,500 = periodic\ payment[\frac{1-(1+0.065)^{-15}}{0.065} ]\\\\36,500 = periodic\ payment[\frac{1-(1.065)^{-15}}{0.065} ]\\\\36,500 = periodic\ payment[\frac{1-0.388826524}{0.065} ]\\\\36,500 = periodic\ payment[\frac{0.611173476}{0.065} ]\\\\36,500 = periodic\ payment[9.40266886 ]\\\\periodic\ payment = 3,881.87658](https://tex.z-dn.net/?f=36%2C500%20%3D%20periodic%5C%20payment%5B%5Cfrac%7B1-%281%2B0.065%29%5E%7B-15%7D%7D%7B0.065%7D%20%5D%5C%5C%5C%5C36%2C500%20%3D%20periodic%5C%20payment%5B%5Cfrac%7B1-%281.065%29%5E%7B-15%7D%7D%7B0.065%7D%20%5D%5C%5C%5C%5C36%2C500%20%3D%20periodic%5C%20payment%5B%5Cfrac%7B1-0.388826524%7D%7B0.065%7D%20%5D%5C%5C%5C%5C36%2C500%20%3D%20periodic%5C%20payment%5B%5Cfrac%7B0.611173476%7D%7B0.065%7D%20%5D%5C%5C%5C%5C36%2C500%20%3D%20periodic%5C%20payment%5B9.40266886%20%5D%5C%5C%5C%5Cperiodic%5C%20payment%20%3D%203%2C881.87658)
Periodic payment = $3,881.88 (Approx).
