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The Concept of Profit Maximisation

   

Added on  2020-02-24

11 Pages1242 Words66 Views
By student name ProfessorUniversityDate: 27 August 2017.

1ContentsQuestion no 1..............................................................................2Question no 2..............................................................................4Question no 3..............................................................................6Refrences....................................................................................101 | P a g e

2Assessment 2Question 1Question aAmount in $Amount earned after each half year 840Numer of full payment 11.9047611 approx Last payment 760Question bAmount in $ Total amount invested 180000SI= PTR/100Interest 72000Total amount after four years 252000Total amount in each payment 1400Therefore size of each payment $1400Question cAmount in $Amount after 1 year 4200Amount after 2nd year 8610Proceeding like above in December 2017she will have 59668.52 | P a g e

3Question d Amount in $Amount at the end of each year 21200Amount after ten years 212000Amount given to sell her future rights 150000This amount after investing for ten years240000As the amount given is more, so she should sell her future rights. Question e Amount in $Let X be the cost of annuity Amount of annuity after 10 years 2xAmount on $1000 at 12 % rate =1120Amount after 10 years 11200Total cost of annuity after 10 years 2x11200x56003 | P a g e

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