ECO100

ECO100

Identify a company in your local or generalized area that you would classify as a monopoly. Explain the key reasons why you classified the company as a monopoly, and state how the company operates relative to at least two (2) characteristics of that particular market

ECO100
Owning the Market” Please respond to the following:
Identify a company in your local or generalized area that you would classify as a monopoly. Explain the key reasons why you classified the company as a monopoly, and state how the company operates relative to at least two (2) characteristics of that particular market

Respond to Julia
A monopoly is broadly defined as a company that owns almost all of the market for a specific product or service. Monopolies hardly have competition, which is why usually high prices can be placed on such items produced by them since they are considered inferior products. Many utility companies are classified as monopolist. A company that posseses these characteristics is First Energy Corporation; which is a company that distributes electricity to many homes and businesses. I classified First Energy as a monopoly since it is a leading energy supplier throughout Northeast, Midwest and Mid-Atlantic regions. The key characteristic that makes this company a monopoly is that they have over 6 million customers within a 65,000 square-mile area. Also, although First Energy Corp is headquartered in Akron, Ohio, they own 10 electric utility companies including Med-Ed which is a major electric distributor in Pennslyvania

FIN100
Most states have turned to the lottery to raise money for education and other state financing needs. Determine the largest payout for the state in which you reside. Explain the options for receiving the money and select the method you would choose. Provide a reason for your decision using the principle of the time value of money.

Respond to Stacy
The largest payout in my state was $208.6 million. I would take the 30 year annual payment with the first being $25,000 and it increases each year until the 30th year where it is $79,000. I choose this decision because you never know what the future holds not only inflation wise, but investment wise too. I would rather be able to control my money now than lose it all because of a bad decision, and have the funds available to my family if something were to happen to me. I also like the sense of security it provides knowing that I will have something each year and still work without it changing me
Chapter 9: P6, P9, P10, P11, P12, P13, P15
P6, Determine the present values if $5,000 is received in the future (i.e., at the end of each indicated time period) in each of the following situations:
A. 5 Percent for ten years
B. 7 percent for seven years
C. 9 percent for four years
P9, Assume you are planning to invest $5,000 each year for six years and will earn 10 percent per year. Determine the future value of this annuity if your first $5,000 is invested at the end of the first year
P10, Determine the present value now of an investment of $ 3,000 made one year from now and an additional $ 3,000 made two year from now if the annual discount rate is 4 percent
P11, What is the present value of a loan that calls for the payment of $500 per year for six years if the discount rate is 10 percent and the first payment will be made one year from now? How would your answer change if the $ 500 per year occurred for ten years?
P12, Determine the annual payment on a 500,000, 12 percent business loan from a commercial bank that is to be amortized over a five-year period.
P13, Determine the annual payment on a $15,000 loan that is to be amortized over a four-year period and carries a 10 percent interest rate. Also prepare a loan amortization schedule for this loan.
P15, Assume a bank loan requires an interest payment of $ 85 per year and a principal payment of $ 1,000 at the end of the loan’s eight-year life.
A. How much could this loan be sold for to another bank if loans of similar quality carried an 8.5 percent interest rate? That is, what would be the present value of this loan?
B. Now, if interest rates on another similar quality loans are 10 percent, what would be the present value of this loan?
C. What would be the present value of the loan if the interest rate is 8 percent on similar-quality loan?

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