Question 1

1.1) You lend a friend RM20,000 for a year. At the end of the year your friend agrees to pay you RM21,100. The interest rate on this loan is _______

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1.2) You lend a friend RM20,000 for a year at an annual interest rate of 5%. At the end of the year your friend must pay you ________ in interest.

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1.3) You agree to lend ________ to a friend for a year at an annual interest rate of 10%. At the end of the year your friend pays you RM600 in interest.

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1.4) You use RM40,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. If the current interest rate on savings is 8%, you earn an economic profit of ___________

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1.5) You use RM50,000 of your own money to start an espresso stand. During the first year you earn a 10% return on that investment. If the current interest rate on savings is 8%, you earn an economic profit of ___________

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Question 2

Refer to Scenario below to answer the following questions.

The government of Stratospheria is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P=55-0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR=55-0.02Q. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of RM5 for providing cable service to each household.

2.1) If Fun Cable Company were to be awarded the exclusive right to provide cable service in Stratospheria, how many households would it service?

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2.2) If Fun Cable Company were to be awarded the exclusive right to provide cable service in Stratospheria, what price would it charge per household per month?

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2.3) If Fun Cable Company were to be awarded the exclusive right to provide cable service in Stratospheria, how much profit would it earn?

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2.4) What is the most Fun Cable Company would bid for the franchise?

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2.5) At what level of output (number of households) is Fun Cable Company's total revenue maximized?

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P/S i cant solve it. Please help me, i think i dont understand how to do it . I really need you help.