Answer:
we will sell bond and invest for better investments
Explanation:
we know here that Yield on Treasury Bond of Grandfather = 2.25%
so we believe interest rate will be continue for rise
Bond are valued = $950
so we the Bond and invest the proceed for better interest rate
and
we know Grandfather bond price will be decrease if rate increase as that we predict
because we know Bonds prices and the interest rate is inversely proportional to the each other
so as that if interest rate increases Bonds prices will be decrease
and the Vice Versa
so that we will sell bond and invest for better investments
because here if once the interest rate increase then he will selling point regarding for Bond and price will be fall
Answer:income elasticity of demand for Americano coffees = 0.55
Explanation:
Income Elasticitity of demand = percentage change in quantity demanded / Percentage change in income
which can easily be calculated using
Income Elasticitity of demand =(New quantity demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.
new income = $28
old income=$22
new quantity= 3450
old quantity=3000
Bringing down our formulae
Income Elasticitity of demand =(New quantitry demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.
= {(3450-3000) /3000} /{(28-22)/22} =(450/3000) /(6/22) = 0.15/0.2727=0.55
income elasticity of demand for Americano coffees = 0.55
Here , we can see that we have a positive income elasticity of demand therefore Americano coffees is a normal good as an increase in income will lead to a rise in demand. Also, the income elasticity of demand for this commodity is less than 1, therefore it is also a necessity good.
Answer:
39 years
Explanation:
Under the rule of 70, the economy doubles its real GDP per capita income
In this the computation is done by dividing the 70 by the annual growth rate
So, the formula is shown below:
Time period = Rule of 70 ÷ growth rate
where,
Growth rate is 1.8%
So, the time period at which the GDP doubles is
= 70 ÷ 1.8
= 39 years
By dividing the rule of 70 by the growth rate we can find the number of years at which the GDP doubles
Answer:
The correct answer is $7,056.46
Explanation:
Giving the following information:
You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. How much do you need to save each year if you can earn 7.5 percent on your savings?
Final value= 55,000*25= 1,375,000
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,375,000*0.075)/[(1.075^38)-1]= $7,056.46
