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You would like to save money to buy a new car that costs $10,000, but currently only have $8,000 and you know you won’t have any further excess savings to contribute more to it. You have available to you a fairly good savings account which pays continuously compounded 5% interest rate. Recall that:
X(t + n) = Xt e^(rn)
Using natural logarithms solve for n to determine how long it will take for the balance of your savings to reach $10,000.
Consider the case of a poor country that receives foreign aid. The aid consists on donations to consumers which represent an increase in their lifetime income of 5%. One of your economist friend is against this foreign aid program. He says that it do..
In what ways and to what extent did coffee production contributed to the growth and development of the Brazilian economy before 1930.
In an annual worth calculation, the capital recovery portion consists of all the following EXCEPT: The Mean lifetime is 5900 hours and the standard deviation of the lifetime is 700 hours. What is the probability that a component will function for a t..
Analyze the characteristics which make any transaction possible and justify the importance of each of the characteristics.
Suppose the restaurant industry is perfectly competitive. All producers have identical cost curves and the industry is currently in long-run equilibrium, with each producer producing at its minimum long-run average total cost of $8.
A thirty year annuity has end of month payments. the first year the payments are each $120. In subsequent years each payment increases by $5 over what it was the previous year. Find the present value of the annuity if i=3%
Government could address the problem with increasing government spending, cutting taxes, or both. If the government decided to increase spending to address the problem, by how much should spending be increased? What could happen to make the policy y..
q1. would you expect firms in a tight oligopoly market reap higher profits than firms in a loose oligopoly market?
What causes movement along AD curve? What causes a shift in the AD curve? What are the factors that affect consumer spending ( C)? What are the factors that affect changes in Investment spending (I)?
Is society obligated to ensure access to a basic level of health care for all its citizens such as the accepted obligation to provide educational opportunity to all citizens?
A study of the costs of electricity generation for a sample of 56 British firms in 1946-1947 yielded the following long-run cost function: Determine the long-run average variable cost function for electricity generation. Determine the long-run margin..
Suppose an economy that is initially at full employment faces a substantial increase in the factor cost of production. Discuss (with the aid of aggregate output market and money market diagrams) the short-run effect on output, unemployment, general p..
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