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1)You are making equal quarterly deposits into your savings account which pays a nominal annual interest rate of 6%

Economics

1)You are making equal quarterly deposits into your savings account which pays a nominal annual interest rate of 6%. To determine the balance in the account after 2 years, you must use the following combination of (i and n) values: O (6%, 2) O (2%, 8) O (0.5%, 24) O (1.5%, 8) 

2)Suppose that you are offered a job as a voice actor for the film: Scoob! 2: Revenge of Scoob (a gritty reboot of the extended Scoobiverse in which you will play a jaded basset hound battling crime and her addiction to rawhide chews). The position pays $25/hour, and you can choose how many hours per day to work. If you take the job, you will need to travel two hours each day on a free shuttle connecting Occidental to Hollywood (if you choose to work 0 hours, you don't need to travel). A mysterious benefactor mails you $100 every day you have these earnings in addition to any income you make on Scoob! 2. You have 16 hours per day to spend either working, commuting or engaged in leisure. All of your income is spent on a single consumption good (C), which costs $1. a. Carefully plot your budget constraint, with hours of leisure per day on the horizontal axis and consumption per day on the vertical axis. Label any intercepts and kinks. b. Suppose that you have preferences over leisure (L) and consumption (C) that can be represented by cobb-douglas style preferences (in other words, your preferences have the form u(C, L) = Cº Lb for some values of a and b). Is it possible that you will work zero hours? Is it possible that you will choose zero leisure time? Why or why not? c. Your benefactor sends you a letter that reads “it is finished.” You won't be receiving any more $100 bills. Graph your new budget constraint on the graph from part a. Is it now possible that you choose to work zero hours? Why or why not? d. Advances in recording technology allow you to work from home (i.e. you no longer need to travel for two hours in order to work more than zero hours). Graph your new budget constraint on the graph from parts a and c (note: you no longer receive $100 from your benefactor). e. Choose a point that could be optimal on your budget constraint from part c. Compared to this point, will you consume more or less leisure when subject to the budget constraint from part d? Why? (hint: if you have cobb-douglas style preferences, is leisure a normal or inferior good?) f. Compared to your optimal choice in part c, will you consume more or less consumption when subject to the budget constraint from part d? Why? g. Based on your answers to part e and f, will you spend more hours working when subject to your budget constraint in part d than in part e? What is the most and least your hours of work could change?

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