Answer:
The amount of deposit is 369.77 dollars
Explanation:
We can calculate the amount of deposit using present value and the number of payment periods, which is 17. It tells us about the value of our future income as measured in today's dollars. Future value for all four years is 1600 dollars. Formula for present value is future value/(1+interest rate)^number of periods. In this case it will be 1600/1.09^17 or 1600/4.327 equals 369.77.
Answer:
$4,372.71
Explanation:
Here for reaching the difference in PV between the first and the second offer first we need to follow some steps which is shown below:-
Step 1
Total payment due = Per tire × Bought tires
= $80 × 600
= $48,000
Step 2
Present value factor of 8.4% for 1 year = 1 ÷ (1 + Rate of interest)^Number of years
= 1 ÷ (1 + 8.4%)^1
= 1 ÷ (1 + 0.084)^1
= 1 ÷ 1.084
= 0.92251
Step 3
First offer
Present value = Total payment due × Present value factor of 8.4% for 1 year
= $48,000 × 0.92251
= $44,280.48
Step 4
Second offer
One year payment = Bought tires × Per tire
= 600 × $45
= $27,000
Step 5
Present value = One year payment × Present value factor of 8.4% for 1 year
= 27,000 × 0.92251
= $24,907.77
Step 6
Total present value = Present value of second offer + Tires cost
= $24,907.77 + $15,000
= $39,907.77
Here we can see that first offer is higher than second offer
So,
The difference between the first and the second offer = First offer - Second offer
= $44,280.48 - $39,907.77
= $4,372.71
Answer:
I would rather sign a contract with talent for a relatively short period say 5 months where I would pay $5000 per month or I would increase the amount paid for the painting to $10000 or $15000
Explanation:
A huge momentarily reward can blind long term gain and during this period.
Answer:
1
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
In a perfect monopoly, there is only one firm operating in the industry
In a monopolistic competition, differentiated products are sold
In an oligopoly, there are few large firms
