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Answer to Question #119655 in Financial Math for Sunsley Maramba
Question #119655
Sunil,who holds a bill worth $40000,gives the bill to a bank with instructions to accept payment at maturity.If the bank charges 1% commission,Find the amount received by sunil
Expert's answer
Sunil will recieve $ 40000 except for 1% comission, hence
"40000-40000*0.01=40000*0.99=39600" dollars
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Dear Danelle Sammy, please use the panel for submitting new questions.
4. A consumer has the utility function U = 4X0.75Y 0.25 and can buy good X at £12 a unit and good Y at £2 a unit. Find the combination of X and Y that they should purchase to minimize the cost of achieving a utility level of 580 and check that second-order conditions are met using the bordered Hessian matrix.
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