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Explain and illistrate on a graph paper consumption function and saving function?
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∙ 14y ago
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How many weeks will it take Blakey saving her allowance to buy a CD player cost 123.75 if she earns 8.25 per week?
NW = CDPC / E* = $123.75 / $8.25/week = 15 weeks
What is the difference between Roth IRA and traditional IRA?
The main difference is the tax structure. With a traditional IRA you pay taxes on the money when you decide to cash it out and it is usually a very large amount. With the Roth IRA, you avoid the taxes when you take the money out. Roth IRA's have income restrictions also.
What is the difference between command and statement?
The difference between command and statement is that command are generally executable in direct mode. Commands usually perform some type of program maintenance such as editing, clearing, running, or saving programs. On the other side statements are the part of a computer program and run in compilers or indirect mode.
How do you calculate the rule of 78's?
RULE OF 78Suppose you have a loan and find that you are able to pay it off early. How much interest should be returned to you? In your loan document, it will probably state that refunds would be based on the "Rule of 78."Let's look at a example to see what this means.Suppose you borrow $2000 at 6% and agree to pay it back in 12 monthly installments. According to the well-know formula for calculating the payment,Payment =Where P is the amount borrowed, i is the monthly interest rate and N is the number of payments.We find that we would be told, on our loan document, that we would make 11 payments of $172.13 and a final payment of $172.17.= 172.13The extra 4 cents on the last payment is due to accumulated round off error.Before looking at the Rule of 78, let's examine the amortization schedule for this loan.AMORTIZATION SCHEDULEPrinciple Payment Interest To Prin. New Balance1. 2000.00 172.13 10.00 162.13 1837.872. 1837.87 172.13 9.19 162.94 1674.933. 1674.93 172.13 8.37 163.76 1511.174. 1511.17 172.13 7.56 164.57 1346.605. 1346.60 172.13 6.73 165.40 1181.206. 1181.20 172.13 5.91 166.22 1014.987. 1014.20 172.13 5.07 167.06 847.928. 847.92 172.13 4.24 167.89 680.039. 680.03 172.13 3.40 168.73 511.3010. 511.30 172.13 2.56 169.57 341.7311. 341.73 172.13 1.71 170.42 171.3112. 171.31 172.17 .86 171.31 -0-Now suppose, maybe because of a tax refund, you decide to pay off your loan two months early. If one looks at the amortization schedule, you would be saving the last two interest payments, $1.71 and .86 for a total of $2.57. However, the loan documents say that, in case you pay off early, the refund of interest will be according to the Rule of 78. Here's what that means. Since the loan was for 12 months, add the numbers from 1 - 12 (a little math). Now, 1 + 2 + … + 12 = 78. Hence the name! The interest on your loan is then divided into 78 shares. Your monthly payments total $2065.60, so the total interest would be $65.60. Divided by 78 yields $0.84 per share. Now the lender assumes it receives 12 shares of interest from your first payment ($10.08), 11 shares from your 2nd payment, etc. So, by paying off two months early, you save (1+2) =3 shares, for a total of $2.52. You lose $0.05!
A cord of wood weighs about 5600 pounds How many cords of wood would you need to replace the electricity you used for heat for 3 months like the last one?
HOW MUCH WOOD From: http://www.cdc.gov/nasd/docs/d001201-d001300/d001235/d001235.html The following is called the Smithers method for estimating the number of cords of wood to heat a house. A standard cord is a well stacked pile of wood 128 cubic feet in volume, a pile 4 feet by 4 feet by 8 feet. Most people have some way to arrive at the amount of conventional fuel it takes to heat the house for an average year. The Smithers method assumes the following equivalents to one cord of average dry hardwood* (W):150 gallon No. 2 fuel oil230 gallon LP gas21,000 cubic feet natural gas6,158 kwh electricity*Dry hardwood is not as commonly sold as green hardwood, which requires about 20 percent more volume to yield equivalent energy to the air dry hardwood. Use the following Energy Efficiency values: Eb Heater Ew Wood Heater 0.65 Oil Furnace 0.10 Fireplace 0.70 Gas Furnace 0.25 Improved Fireplace 1.00 Electric 0.30 Nonairtight Stove 0.65 LP Gas 0.50 Airtight Stove 0.60 Wood Furnace 0.65 Airtight Stove with Catalytic Combustor The Smithers method equation is: Cords = B x E b-------------------------W x E w Where B = units of conventional fuel consumed per year. Example 1: Assume you are considering purchase of a wood furnace and your use of No. 2 fuel oil has averaged 500 gallons per year in recent years. How much wood is needed to produce the same quantity of heat if a wood furnace is used? Cords = 500 gal x .65--------------------------------------150 gal x .60 = 3.6 cords Example 2: Assume you are considering purchase of an airtight stove with catalytic combustor and your use of natural gas has averaged 60,000 cubic feet per year in recent years. How much wood is needed to produce the same quantity of heat if an airtight stove with catalytic combustor is used? Cords = 60,000 cu ft x .70-------------------------------------21,000 cu ft x .65 = 3.1 cordsFUEL COST COMPARISONS Before considering the following examples, refer to Circular 584 for certain definitions, such as cord, efficiency, BTU, and energy equivalents. Also check for wood characteristics, including weight and heating value per cord of wood species common to South Carolina. I. First, let's compare wood with other fuels, being concerned only with wood that is split and delivered to the house at a specific price. A. Cost per Million Btu's (MBtu) Useful Heat Into the Room:1) Fuel oil at $1.00 per gallon: There are 140,000 Btus per gallon of fuel oil and oil furnace efficiency equals 0.65: 1,000,000 Btu x $1.00/gal-------------------------------------140,000 Btu/gal x .65 = $10.99/MBtu Note 1: Fuel oil at any other price is a multiple of this. For example, with fuel oil at $1.50 per gallon, the cost per MBtu = ($10.99/MBtu) x 1.5 = $16.48/MBtu since $1.50 per gallon is 1.5 times the $1.00 per gallon price.(2) Electricity at $.10/kwh, 3,414 Btu/kwh, and efficiency equals 1.0: 1,000,000 Btu x $.10/kwh--------------------------------------3,414 Btu/kwh x 1.0 = $29.29/MBtu Note 2: Electricity at any other price is a multiple of this. For example, with electricity at $.08 per kwh, the cost per MBtu = ($29.29/MBtu) x 0.8 = $23.43/MBtu since $.08/ kwh is 0.8 of the $.10/kwh price. (3) Natural gas at $1.00/100 cu ft, 1000 Btu/cu ft, and efficiency equals 0.70: 1,000,000 Btu x $1.00/100 cu ft--------------------------------------1,000 Btu/cu ft x .70 = $14.29/MBtu Note 3: Natural gas at any other price is a multiple of this. For example, with natural gas at $.70 per 100 cu ft, cost per MBtu = (14.29/MBtu) x 0.7 = $10.00/MBtu since $.70/ 100 cu ft is 0.7 of the $1.00/100 cu ft price. (4) Wood (between green and air dry red oak) at $120/ cord, 19.6 MBtu/cord, and efficiency of airtight stove equals 0.50: 1,000,000 Btu x $120/cord-------------------------------------------19,600,000 Btu/cord x .50 = $12.24 /MB+u Note 4: Wood prices will vary considerable across the state. B. Fuel Quantity /Cost Comparison:A homeowner is using 700 gallons fuel oil per year and wants to switch to wood heat using an airtight stove and half dry red oak at the above prices. Compare these: (1) 700 gal fuel oil x 140,000 Btu/gal x .65 efficiency = 63.7 MBtu Annual cost = 700 gal x $1.50/gal = $1,050 (2) Wood required = 63.7 MBtu useful heat/season-------------------------------------19.6 MBtu/cord x .50 eff. = 6.5 cords Annual cost = 6.5 cords x $120/cord = $780 (3) Savings by using wood = $1,050 $780 = $270/ season (4) Wood/fuel oil energy equivalence for these conditions: 700 gal fuel oil = 6.5 cords red oak or 1 cord red oak = 108 gallons fuel oil C. How Much Can You Afford to Pay for Wood Compared to Conventional Fuels When Using an Airtight Stove? (1) Cost/MBtu ¸ cords wood to give MBtu (useful heat into room)(2) From A.1 above, fuel oil at $1.50/gal $16.48/MBtu; cords/MBtu useful heat = 1 MBtu--------------------------------------19.6 MBtu/cord x .50 eff. = .102 cord 16.48/MBtu-----------------------------------.102 cord/MBtu = $161.57/cord (3) Electricity at $.08/kwh = $23.43/MBtu $23.43/MBtu-------------------------------.102 cords/MBtu = $229.70/cord (4) Natural gas at $.70/100 cu ft = $10.00/MBtu $10.00/MBtu------------------------------.102 cord/MBtu = $98.04/cord II. Consider the case where you have your own tools for cutting wood and you have a pickup truck to haul it. You have located a good place to cut wood 4 miles from your home at a $25/cord charge for what is taken. The pickup will haul 1/ 2 cord of wood when it is well stacked. You figure you can cut, load, and haul a load in 3 hours and split and stack a load in 2 hours. You plan to cut the season's requirement mentioned above (6.5 cords). Let's figure the annual wood cost: Permit Charge: $25/cord x 6.5 cords = $162.50 Transportation: 8 miles/trip x 13 trips35 x $.40/mi. (est.) = 41.60 Chain Saw: $35 F.C. + $30 O.C. = 65.00 Other Tools, Personal Protective Equipment: = 25.00 Labor Costs: Cut/haul 3 hr x 11 loads x $5/hr = 65.00 Split/stack 2 hr x 11 loads x $5/hr = 10.00 Total = $569.10 or$65.67/cord Good points can be made as to why some of these charges should be higher or lower than indicated. For example, some people say they enjoy that type of work and do not feel a labor charge is necessary; on the other hand, some who perform hard physical work during the normal work day would say the labor charge is too low. Also, many people may have wood on their own land or have free access to wood, eliminating that charge. Cost comparisons must be tailored to fit each specific case. III. Another major economic consideration is that of the fixed cost for the wood heater as compared to that for the conventional fuel heater. A simplified comparison is given. Consider the fixed cost for buying and installing an airtight stove to be $2,100. The same heating capacity oil furnace could be purchased and installed for $1,700 at a difference of $400 in investment. Assume the lifetime for each of the heaters to be 15 years when maintained properly. If current interest rates are used and the loss of this interest on the $400 investment difference is added to the $400 difference, the annual saving in fuel cost by using wood would have to exceed about $111 to economically justify the wood stove over the oil furnace. Reference to I.B.(3) indicates the annual savings for using wood to be $270 without considering the investment. If the oil furnace initial cost were more or the wood stove were less, the annual savings by using wood would not have to be as great. On the other hand, if the difference in investment costs between the two furnaces were greater than the $400 illustrated, the annual savings would have to be even greater to economically justify the wood stove. MY FUEL USE COMPARISONS: Current Fuel Type____________________ Annual Fuel Usage________________________ Wood Equivalent to This: Cords = Annual fuel quantity x E heater-----------------------------------------------One cord wood equivalent x E wood heater = ___________________USEFUL REFERENCES Heat Producing Appliance Clearances. NFPA No. 89M, National Fire Protection Association, 470 Atlantic Avenue, Boston, MA 02210. Chimneys, Fireplaces, and Vents. NFPA No. 211, National Fire Protection Association, 470 Atlantic Avenue, Boston, MA 02210.Heating With Wood. Larry Gay. Garden Way Publishing, Dept. 90731, Charlotte, VT 05445, 128 pp. Planning and Building Your Fireplace. Margaret and Wilbur F. Eastman, Jr. Garden Way Publishing, Dept. 90731, Charlotte, VT 05445, 128 pp. Woodstove Cookery. Jane Cooper. Garden Way Publishing, Dept. 90731, Charlotte, VT 05445, 204 pp.Woodstove Directory. 1986. Communications Press, P. O. Box 4474, Manchester, NH 03108. When Does It Pay To Burn Wood." 1980. Paul Stegmier and L. T. Hendricks. Wood Burning Quarterly - Home Energy Digest. V.4(2):4953. How To Buy the RightSize Wood Stove." 1978. Charles Banker. Wood Burning Quarterly - Home Energy Digest. V.3(1):8188. How Many Cords Are Enough." 1978. Michael Harris. Wood Burning Quarterly - Home Energy Digest. V.2(4):1618.
What is rationale saving decision?
According to the law of economics, Income is a function of savings and consumption. Saving decision by an individual helps to maintain resources for future consumption whenever he feels the demand to.
What is rationale of saving decision?
According to the law of economics, Income is a function of savings and consumption. Saving decision by an individual helps to maintain resources for future consumption whenever he feels the demand to.
What Income not used for consumption is?
Saving
What is income not used for consumption called?
Saving
What is Income not spent on current consumption or taxes is?
saving
What do economists define saving as?
it's forgone consumption.
What has the author Jonathan A Parker written?
Jonathan A. Parker has written: 'Precautionary saving and consumption fluctuations' -- subject(s): Consumption (Economics), Econometric models, Mathematical models, Saving and investment
Why do you need daylight saving time?
It is an option that reduces power consumption.
Why are the tips of the wing turned up on an airplane?
They are called winglets, the main function of the winglets is to reduce drag. Reducing drag increases speed and decreases fuel consumption, thereby extending range and saving money.
What is the primary determinant of the level of consumption and saving in the economy?
the level of income
What can households do with their personal disposable income?
They can either spend it (consumption) or they can put it into their bank account (saving)
What does the amount of consumption in an economy depend on A. Inversely on the level of disposable income B. Directly on the level of disposable income C. Inversely on the level of saving?
level of saving
