Suppose you invest $210,000 in an annuity that returns 6 annual payments, with the first payment one year from now and each subsequent payment growing by 5%. At an interest rate of 8%, how much is the first annual payment you receive?

$40,510.82

Explanation:

Present value = $210,000

Number of annual payments (n) = 6

Growth rate (g) = 5% or 0.05

Interest rate (r) = 8% or 0.08

Amount of first annual payment = [Present value * (r - g)] / [1 - {(1 + g)/(1 + r)}^n]

Amount of first annual payment = [210,000 * (0.08-0.05)] / [1 - [(1+0.05) / (1+0.08)]^6]

Amount of first annual payment = [210,000*0.03] / [1 - (0.972222)^6]

Amount of first annual payment = 6,300 / [1 - 0.844486]

Amount of first annual payment = 6,300 / 0.155514

Amount of first annual payment = 40510.82217678151

Amount of first annual payment = $40,510.82

So, the amount of the first annual payment you will receive is $40,510.82.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.

answer blank(1).(2); sharpe;