Calculate Answers to the Following Questions Using Future Value And/or

question 52

Essay

Calculate answers to the following questions using future value and/or present value tables.
a.If $100 is deposited in an account paying 8 percent simple interest,what will be the value of the account in five years?
b.If an accumulation of $4,000 is desired at the end of four years,what amount must be deposited now to accomplish that goal,assuming 12 percent interest compounded annually?
c.A deposit of $1,000 made at the end of every six months for five years will grow to what amount,assuming 10 percent interest compounded semiannually?
d.What is the present value of $150 received at the end of each year for 4 years,assuming 9 percent interest compounded annually?
e.What amount must be deposited at the bank today to grow to $10,000 in five years,assuming 14 percent interest compounded semiannually?

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Definitions:

Monopolistically Competitive

Refers to a market scenario akin to monopolistic competition, where sellers offer differentiated products that give them some control over pricing.

Average Total Cost

This is calculated by dividing the total cost of production by the total number of units produced, showing the average cost per unit.

Marginal Revenue

The additional income received from selling one more unit of a product or service.

Economic Profit

The surplus remaining after accounting for both explicit and implicit costs from total revenues.