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The recent global development of Russia invading Ukraine has led to USA and European countries imposing sanctions on Russia. Given that Russia is a major player in OPEC, discuss the implication of this in South African economy.
5. Consider the demand and supply functions for the notebooks market.
𝑄𝐷=10,000−100𝑝 𝑄𝑆=900𝑝
a. Make a table with the corresponding supply and demand schedule.
b. Draw the corresponding graph.
c. Is it possible to find the price and quantity of equilibrium with the graph method?
d. Find the price and quantity of equilibrium by solving the system of equations.
A student will receive P3,000 at the beginning of each 3 months for 4 years. What is the sum of this annuity at the end of the 4th year if the interest rate is 6% compounded quarterly?
Ans. 54,604.07
7.) A businessman is faced with the prospect of fluctuating future budget for the maintenance of the generator. During the first 5 years, P1,000 per year will be budgeted. During the second five years, the annual budget will be P1,500 per year. In addition, P3,500 will be budgeted for an overhaul of the machine at the end of the fourth year and another P3,500 for an overhaul at the end of 8th year. Assuming compound interest at 6% per annum, what is the equivalent annual cost of maintenance?
Ans. P1,888.87
5.) A man deposits P500 at the end of each year and expected to have an amount of P2,769.84 at the end of 5 years.
1. What is the nominal rate of interest if it is compounded annually?
2. What is the nominal rate of interest if it is compounded continuously?
3. Compute the equivalent compound amount factor if it is compounded continuously
Ans. 1. 5.127% 2. 5% 3. 5.3968
Given utility function U= where PX = 12 Birr, Birr, PY = 4 Birr and the income of the consumer is, M= 240 Birr. A. Find the utility maximizing combinations of X and Y. B. Calculate marginal rate of substitution of X for Y (MRSX,Y) at equilibrium and interpret your result
8.) The following terms of payment for an annuity are as follows:
Periodic payment = P20,000
Payment interval = 1 month
Interest rate = 18% compounded monthly
Terms = 15 years
1. Find the present worth paid of all the payments if it is paid at the end of each month.
2. Find the difference between the sums of an annuity due and an ordinary annuity on these payments.
3. Find the difference between the present values of an annuity due and an ordinary annuity based on these payments.
Ans. 1. P1,214,911.246 2. P271,687.35 3. P18,628.67
Illustrate and explain how an increase in household income will affect the equilibrium price and quantity in the market for mobile data
6.) A social worker deposits a uniform amount of P12,000 at the end of each year in order to get a lump sum of money by the time she will retire at the end of 20 years. If the compound amount factor for this annuity is equal to 36.78559.
1. Compute the nominal interest rate.
2. Determine how much will she receive at the end of 20 years.
3. Determine the worth of the sinking fund factor in this fund invested.
Ans. 1. 6% 2. P441,427.08 3. 0.027184557
The behaviour of a firm depends on the features market in which it operates. With reference to the criteria below, identify a relevant Monopoly in South Africa and explain how the selected firm aligns with the market criteria for a Monopoly.
- The number of firms in the market
- The nature of the goods or services sold
- Ease of entry for new competitors into the market
- Control that the firm has over price
