a) A person plans to deposit 100000 in the first year in his savings account. He reduces hisdeposit amount by 2000 thereafter for next 12 years. The bank gives 7.5% interestcompounded annually. Find the maturity value of the deposit.b) Given the market demand and supply curve of a productQ = 10000 -P (Demand)Q 9000 + 4P (Supply)(i) Find the equilibrium price and quantity(ii) If a GST of 20 per unit is imposed on the product find its effect on the equilibrium price. Isthe buyer less elastic? Why?(iii) Draw a suitable diagram to demonstrate the effect of the GST on the price of the product.

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a) A person plans to deposit 100000 in the first year in his savings account. He reduces his deposit amount by 2000 thereafter for next 12 years. The bank gives 7.5% interest compounded annually. Find the maturity value of the deposit.

a) A person plans to deposit 100000 in the first year in his savings account. He reduces his deposit amount by 2000 thereafter for next 12 years. The bank gives 7.5% interest compounded annually. Find the maturity value of the deposit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

a) A person plans to deposit 100000 in the first year in his savings account. He reduces his
deposit amount by 2000 thereafter for next 12 years. The bank gives 7.5% interest
compounded annually. Find the maturity value of the deposit.
b) Given the market demand and supply curve of a product
Q = 10000 -P (Demand)
Q 9000 + 4P (Supply)
(i) Find the equilibrium price and quantity
(ii) If a GST of 20 per unit is imposed on the product find its effect on the equilibrium price. Is
the buyer less elastic? Why?
(iii) Draw a suitable diagram to demonstrate the effect of the GST on the price of the product.

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