Econ Decision Analysis

Anonymous
timer Asked: Feb 6th, 2019
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Question Description

Solve the following problems from the back of our fourth chapter:

4-1

4-7

4-9

4-25

4-55

4-83

If you want to solve these on paper, you may take a picture of your solutions and upload the pictures as your submission. Regardless of how you solve the problems, show your work in detail. The process of getting to the correct answer is (at this point) almost as important as the correct answer itself.

Econ Decision Analysis
photo_2019_02_05_09_43_09_2.jpg
Econ Decision Analysis
photo_2019_02_05_09_43_09_3.jpg
Econ Decision Analysis
photo_2019_02_05_09_43_09_4.jpg
Econ Decision Analysis
photo_2019_02_05_09_43_09_5.jpg
Econ Decision Analysis
photo_2019_02_05_09_43_09_6.jpg

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Tutor Answer

Super_Teach12
School: Rice University

Here is your assignment :)

Question: 4-1: Rose recently graduated in engineering. Her employer will give her a raise of
$6500 per year if she passes the FE exam (Fundamentals of Engineering).
(a) Over a career of 45 years, what is the present worth of the raise if the interest rate is 4%?
(b) What is the future worth at Year 45?
(c) Incentive pay systems can create ethical dilemmas in the workplace. Describe one each
from the perspective of the employer and the employee.
Answer:
a). Find PV:
1(1 + 𝑖)βˆ’π‘›
𝑃𝑉 = 𝑃𝑀𝑇 [
]
𝑖
1 βˆ’ (1 + 0.04)βˆ’45
= $6500 [
]
0.04
= πŸπŸ‘πŸ’πŸ”πŸ–πŸŽ
b). Find FV:
𝐹𝑉 = 𝑃𝑀𝑇 [

1(1 + 𝑖)βˆ’π‘›
]
𝑖

(1 + 0.04)βˆ’45 βˆ’ 1
= $6500 [
]
0.04
= πŸ•πŸ–πŸ”πŸ”πŸ—πŸ

c). The present worth of the raise is good enough which is $134680 which been a god
recommendation for Rose. The future work which is $786691 is a big income for Rose.

Question 4-7: A car may be purchased with a $3500 down payment now and 72 monthly
payments of $480. If the interest rate is 9% compounded monthly, what is the price of the car?
Answer:
Monthly interest rate = 9% /12
= 𝟎. πŸ•πŸ“...

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Anonymous
Top quality work from this guy! I'll be back!

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