solve the following questions ,thanks.,,,
1. Exercise One: A representative from Fiterman Insurance Company offers you an annuity that pays $2,500 at the end of each year - for the next 10 years. If the interest rate is 5.75%, using the annuity discount formula, (a) what is the fair price of this annuity today? (b) Suppose they modify the deal, and offer you an annuity that pays the same coupon, but on a semi-annual basis, what is the fair price of this instrument? 2. Exercise Two: After winning the lottery, you are promised to receive $500,000 semi- annually for the next 30 years - should you choose your award to be paid in future installments. If you rather have the total amount disbursed in a single lump sum today - how much would this payment be? Assume that the interest rate is 4.15%. 3. Exercise Three: Suppose you want to start your own business, and you plan to invest $1,200 quarterly in an interest bearing account with an annual interest rate of 4.25%. If you plan to start your business in 10 years, how much money will you have then? 4. Exercise Four: As part of your early retirement plan, and you plan to save $1,500 monthly in an interest bearing account with an annual interest rate of 4.25%. If you plan to retire in 30 years, how much money will you have then for retirement?1.- There are demand and supply functions for good corn for the home country and demand and supply functions for good wheat for the foreign country. Home country as an importer and foreign country as an exporter trade with each other, at zero cost of transportation. A. Find and graph the equilibrium under free trade. What is the world price and the volume of trade? Also, in the absence of trade, what are the prices that would prevail in home country for com and in foreign country for wheat?. (Pt = Pt' = Pw -:=- Pw; world prices) B. Suppose home imposes a specic tariff of 5 on corn imports. Find and graph the effects of tariff on price of corn in each country, on the quantity of com supplied and demanded in each country, on volume of trade? And briey explain these results in relation to the effects of the tariff? B. Let the tariff conditions in section (b) be valid. Determine and graph the effect of tariff on the welfare of each of the following group: i] Home import-competing producers, ii} Home consumers, iii) Home government. Briefly explain your results. 9. Starting from free trade conditions, section (a), assume that foreign country offers exporters a subsidy of 5 per unit. Calculate and show the effects on welfare both of individual groups and of the economy as a whole. Briey explain your results. How does these results of subsidy differ from results of tarif in sections (b) and (c)? Required: 1. Determine the correct amounts for 2018 ending inventory, purchases, accounts payable, accounts receivable, and sales revenue. 2. Calculate cost of goods sold for 2018. 3. What was the effect of the error in ending inventory on 2017 before-tax income? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 What was the effect of the error in ending Inventory on 2017 before-tax income? 2017 before-tax income was try
