Jenna is the beneficiary of a fund of 20,000 that pays her 1,000 at the end of each month. The fund earns 6% compounded monthly. The final payment to exhaust the fund will be a balloon payment. Calculate the amount of the balloon payment.

Given

Fund Amount P=20000

Payment each month A=1000

Interest rate per month r=6%/12=0.5%

Let B is balloon payment and N is the total number of Payment

so P=A*(1-(1+r)^-(N-1))/r + B/(1+r)^N

20000=1000*(1-(1+0.5%)^(N-1))/0.5% + B/(1+0.5%)^N

By using the trial and error method we find that N=21

So B/(1+0.5%)^21=1012.53

B=1124.39

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know