Mathematics of Finance
Homework 1
Exercise 1
Calculate the interest (I=PVit) and the balance (FV) at the beginning of the following month
knowing that this account accrues the interest at the end of each month, with a monthly liquidation
of interests. The
Question 1
1. Country A has absolute advantage in producing pasta
2. Country A has absolute advantage in producing rice
3. The opportunity cost of pasta in terms of rice for country A is 1
The opportunity cost of pasta in terms of rice for country B is 1.
Eco. Assignment 4. Roman Grytsai
Question 2, page 287
a)
The best alternative that is forgone because a particular course of action is
pursued. Opportunity are fundamental costs in economics, and are used
in computing cost benefit analysis of a project. F
Roman Grytsai
3.
A)
1.
Income $10,000:
Change in Quantity Demanded= (32-40)/40) x 100= -20
Change in Price= (10-8)/8) x 100= 25
Price elasticity of demand= -20/25= -0.8
2.
Income $12,000:
Change in Quantity Demanded= (45-50)/50) x 100= -10
Change in Price
QUESTION 1
There are two countries A and B. In each country a worker has 20 hours of labour to produce two products
pasta and rice. In Country A it takes an hour to produce a unit of pasta and in 1.5 hours to produce a unit of
rice. In Country B it takes
QUESTION 1
There are two countries A and B. In each country a worker has 20 hours of labour to produce two products
pasta and rice. In Country A it takes an hour to produce a unit of pasta and in 1.5 hours to produce a unit of
rice. In Country B it takes