Suppose the zero rate for a 1-year investment is 0.062, the zero rate for a 2-year investment is 0.072, and the zero rate for a 3-year investment is 0.082 (all rates are continuously compounded). What is the forward rate for the 3rd year?
In: Finance
Find the annual deposit of equal amount needed in Year 2 through Year 5 (End of Year 2 through End of Year 5) to provide for annual withdrawals of $1,500 at the end of years 6, 7, 9 and 10 at an interest rate of 12% per year compounded yearly.
In: Economics
1. Fill in the blank. The real GDP for a given year values current year output at _____ year prices.
Group of answer choices
base
current
2. Which of the following values for the GDP deflator would imply that the price level is higher in the current year than in the base year?
90
110
100
3. Which of the following values for the GDP deflator would imply that the price level in the current year equals the price level in the base year?
90
110
100
In: Economics
Timothy quits his job which pays $86000 a year , to enroll in a 3 year graduate program. His annual school expenses are $64900 for tuition, $8500 for books, and $1300 for food.
1. What is his opportunity cost for attending the graduate program?
A motor vehicle assembly plant requires the use of both capital and labour. The Tesla manufacturing plant is considering increasing the numbers of workers to production.
1. Does Diminishing Return hold in this scenario? (YES/NO)
2. Explain answer
In: Economics
The probability that a 28-year-old male in the U.S. will die within one year is approximately 0.001395. If an insurance company sells a one-year, $10,000 life insurance policy to such a person for $255, what is the company's expectation? (Round your answer to the nearest dollar.)
In: Statistics and Probability
The probability that a 28-year-old male in the U.S. will die within one year is approximately 0.001395. If an insurance company sells a one-year, $30,000 life insurance policy to such a person for $195, what is the company's expectation? (Round your answer to the nearest dollar.).
In: Statistics and Probability
The probability that a 22-year-old female in the U.S. will die within one year is approximately 0.00044. If an insurance company sells a one-year, $25,000 life insurance policy to such a person for $155, what is the company's expectation? (Round your answer to the nearest dollar.)
In: Statistics and Probability
The probability that a 22-year-old female in the U.S. will die within one year is approximately 0.00044. If an insurance company sells a one-year, $30,000 life insurance policy to such a person for $95, what is the company's expectation? (Round your answer to the nearest dollar.)
In: Statistics and Probability
The probability that an 80-year-old male in the U.S. will die within one year is approximately 0.069941. If an insurance company sells a one-year, $12,000 life insurance policy to such a person for $425, what is the company's expectation? (Round your answer to two decimal places.)
In: Economics
The probability that a 30-year-old male in the U.S. will die
within one year is about 0.00142. An insurance company is preparing
to sell a 30-year-old male a one-year, $40,000 life insurance
policy. How much should it charge for its premium in order to have
a positive expectation for the policy? (Round your answer to the
nearest dollar.)
In: Statistics and Probability