What is the present value of CD with 4% annual interest that matures in 1 year with the value of $3000? What is the future value? What factor would determine which value you chose to use?

Suppose that apples cost $1. A consumer feels that they are willing to give up 4 apples in order to consume a banana, as long as they are consuming 10 or less bananas. After the 10th banana their appreciation for them is not as high, so they are willing to trade 2 apples for an additional banana, as long as their banana consumption is less than or equal to 20. After the 20th banana they are fed up of bananas and would not give up a single apple for a banana. Note: All parts are worth 10 points. Questions: (1) What is the demand curve for bananas (a picture, fully lablled, is enough) (2) Assume the supply curve for bananas is S(p)=5p. What is the equilibrium price and quantity in the market for bananas? (3) Suppose that there is a natural disaster in apple growing countries, so now the price of apples is $2. Assume that the resources used in banana production are not suitable for apple production, so this change in the price of apples leaves supply of bananas unaffected. What is the new equilibrium price and quantity in the market for bananas?

A patient is ordered for 800mL NSS to infuse over 4 hours. 1 hour into the infusion only 50 mL have infused. Recalculate the infusion rate in mL/hr to complete infusion in the prescribed time.

1- It is MOST accurate to say that the recession of 4-5 years ago resulted in which of the following?

- an overselling of private goods

- a widespread disbelief in the possibility of achieving the American dream

- a decline in conspicuous spending

- an increase in materialism

2-

The intangibility of the service means that:

- advertising or other forms of promotion are of little importance to the services marketer.

- unused capacity cannot be shifted from one time period to another.

- brandnames or trademarks can’t be used because they must refer to tangible goods in order to be effective.

- the value of a service may be based on a customer’s experience.

According to the concept of the product life cycle,:

- new products may pass through a life cycle stage quickly, virtually skipping it.

- products spend a predetermined amount of time in each stage of the life cycle; this time span is determined

by the product category.

- most products require the same level of marketing throughout their life cycle.

- all products begin at the introductory stage and move through the life cycles stages at a steady rate

Retail assortments are looking more and more alike because:

- customers today are more focused on service differentiation

- national-brand manufacturers have placed their products almost everywhere

- market segmentation has proven ineffective

- stores are clustered together to increase their customer pulling power

1. a) What is Multiplier? Explain how it works in an economy. 4
b) Explain the paradox of thrift. Why do you think it is a paradox? 3
c) Suppose the consumption function is given by C=300+0.75Y while
investment spending is 900 with no govt. expenditure. 3
i. Determine the equilibrium level of national income and consumption
expenditure.
ii. If investment spending increases to 1100, what will be the effect on
equilibrium income?
iii. If the government desires to increase the national income level by
$1200 billion from its equilibrium value, what should be the change in
investment spending?

1) A mixture of 5 pounds of fertilizer A, 13 pounds of fertilizer B, and 4 pounds of fertilizer C provides the optimal nutrients for a plant. Commercial brand X contains equal parts of fertilizer B and fertilizer C. Commercial brand Y contains one part of fertilizer A and two parts of fertilizer B. Commercial brand Z contains two parts of fertilizer A, five parts of fertilizer B, and two parts of fertilizer C. How much of each fertilizer brand is needed to obtain the desired mixture?

2) A chemist needs 10 liters of a 25% acid solution. The solution is to be mixed from three solutions whose concentrations are 10%, 20% and 50%. How many liters of each solution will satisfy each condition?

a) Use 2 liters of the 50% solution.

b) Use as little as possible of the 50% solution.

c) Use as much as possible of the 50% solution.

Questions 1 – 4 refer to prospects X and Y below, as well as the following information ?? = ($0, 0.50; $50, 0.40; $100, 0.10) ?? = ($0, 0.5; $30, 0.20; $80, 0.30) Mark has utility of wealth given by ??(??) = ??0.4 1. What is the expected value of prospect X (????(??))? 2. What is the standard deviation of prospect X (????(??))? (Round your answer to the nearest cent, and don’t worry, I’ll include a healthy margin of error so you won’t get this wrong due to rounding). 3. What is the value of the expected utility of Y for Mark (EU(Y))? 4. How much is Mark willing to spend to acquire Y (so, what is the value of ????(??))? (Hint, if ??(??) = ??0.4,??ℎ???? ??−1(??) = ??2.5).

Part 4:

1. A woman has been injured in an automobile accident and as a result is permanently disabled for life. (The accident was not her fault.) She is 35 years of age and had planned on working until age 70. As a potential college professor, she was about to start a job that paid $50,000 annually. Using 6%, what is the amount of lost income in present-day dollars?

2. Additionally, she faces annual medical bills of $30,000, all of which are related to the accident. Her life expectancy is age 85. Using 6%, what is the amount of the medical expenses in present-day dollars?

3. Also, during retirement she had planned on receiving $75,000 per year. What is the present-day value of the lost pension? Note: This part requires two calculations.

4. How much should she sue for in court in terms of damages and lost compensation ? Ignore attorney fees?

1- Identify 4 of the 6 tests an auditor uses on the bank reconciliation?

( Accounting Auditing)