Given a discount rate of 10 percent, the present value of receiving $100,000 two years in the future is
A) $12,000.
B) $80,000.
C) $82,645.
D) $121,000.
Answer: C
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times If Kyle changes from a pure strategy of "shoot 2" and decides to "shoot 1" in two of the games, Stan would be best off if he
A) stuck with a pure strategy of "shoot 2." B) switched to a pure strategy of "shoot 1." C) stuck with a mixed strategy of "shoot 1" 50% of the time and "shoot 2" 50% of the time. D) switched to a mixed strategy of "shoot 1" more than 50% of the time and "shoot 2" less than 50% of the time.
In February, market analysts predict that the price of titanium will rise in March. What happens in the titanium market in February, holding everything else constant?
A) The quantity of titanium demanded and the quantity of titanium supplied both increase. B) The supply curve shifts to the right. C) The supply curve shifts to the left. D) The demand curve shifts to the left.
U.S. government bonds held by commercial banks are: a. government assets and commercial bank assets
b. government assets and commercial bank liabilities. c. government liabilities and commercial bank assets. d. government liabilities and commercial bank liabilities.
In Figure 5-2, compare demand curve D between points F and G to demand curve D' between points J and K. Which of the following statements is correct?
Figure 5-2
a.
Both demand curves have the same slope, but D' is more elastic in the $2 to $3 range.
b.
Both demand curves have the same slope, but D' is less elastic in the $2 to $3 range.
c.
Both demand curves have the same price elasticity of demand, but D' has a larger slope.
d.
Both demand curves have the same price elasticity of demand, but D' has a smaller slope.
e.
Both demand curves have the same slope and the same value for the price elasticity of demand.