Question

2 JUINS) Problem11- 20: Fill in the blanks with correct answer(s)._(2 points/correct readable answer) of the money usually varies, depends upon the economic situation. 12. In the decision-making process, feasible alternatives will be generated in the step. (give the step name) 13. Earning power of money usually varies, depends upon:__ 14. S is equivalent to $8585 two years later if I -10% compounded semi-annually. 15. When F-370 and P-50 and i-10% then n will be _

Answer 1

Answer 11

Value of money varies depending upon the economic situation.

Answer 12

Feasible alternatives are generated in Identify the Alternatives step

Answer 13

Earning power of money depends upon the inflation rate

Answer 14

Semi annual rate=10%/2=5%

No of periods =2*2=4

PV=8585/(1+5%)^4=8585/1.05^4=8585/1.2155= $7062.90

Answer 15

370=50*(1+10%)^n

Or, 370/50=1.1^n

Or, log 7.4=n log 1.1

Or, n= log7.4/log1.1

Or, n=21

Hence 21 is answer