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An investment account of £120,000 attracts 3.6% compound interest per annum.
Q1: If the interest is compounded annually, calculate how much will be in the account after 5 years.
Q2: Calculate how much more interest would have been earned if the interest had been compounded six-monthly at a rate of 1.8% per period.
Q3: Calculate the true annual rate of compound interest if interest of 1.8% is added half-yearly.
In the diagram, add an indifference curve to illustrate the family's optimal bundle after receiving the SNAP card. Assume the family has homothetic preferences. Label this bundle with the letter H for homothetic.
Calculate Joe's Marginal Revenue Product for Labor (MRPL). What is Joe's optimal level of L if w=$22.75? Why?
Explain whether the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved- regulating cable TV prices.
What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic? Explain law of demand with the help of a demand schedule and demand curve.
Evaluate the impact of monetary and fiscal policies and the multiplier in achieving economic goals - Explain why this fiscal policy should be used and explain how this fiscal policy would impact the economy.
In a certain economy consumption (C) is given as; C = 10,000 + 0.7Y I = 10,000 where G = Government spending G = 5,000 X = Exports
Explain why the following statement is false: If a firm's output is increasing and marginal cost (change in total cost divided by change in quantity) is rising, then average total cost (TC/Q) must be rising also.
Suppose a random sample of size is selected from a population. Find the value of the standard error of the mean.
Given carrier frequency fc=900 Mhz and mobile speed is 100 km/h. Find the received carrier frequency when
Fiscal policies can work only if private enterprises respond to them in certain way; if they respond in other ways, the policies fail. Explain and give examples.Can the government make things worse by intervening in markets Are there other options..
Illustrate ahat are the general equilibrium values of the real interest rate, price level, consumption, and investment.
In a popular ski resort town, the (inverse) demand for ski jackets is P=476-1.5Qd and (inverse) supply is P=80+.5Qs. Find the market equilibrium quantity and price for ski jackets.
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