If a small firm wishes to pay cash in one year for a $10,000 machine, how much must the firm currently place in savings at 5 percent in order to have the necessary total cash in one year?
What will be an ideal response?
PV = ($10,000)/(1.05) = $ 9,523.81($9,523.81)(.05) = ? 476.19 interest earned$9,523.81 + 476.19 = $10,000.00
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Refer to Table 2-17. What is Lucy's opportunity cost of making a wagon?
A) 3 wagons B) 3/4 of a wagon C) 1 1/3 tricycles D) 2 tricycles
Which of the following is not a function of money?
a. Standard of deferred payment. b. Medium of exchange. c. Legal tender. d. Store of value. e. All of the above are functions of money.
Which of the following statements best describes the relationship between marginal costs and the average variable cost (AVC) curve?
a. The marginal cost curve is below the AVC curve by a fixed amount. b. Marginal costs are equal to average variable costs at the lowest point on the AVC curve. c. Marginal costs are equal to or below the average variable costs at very high output. d. The marginal cost curve is higher than the average variable cost curve regardless of output.
Exhibit 16-2 Unemployment categories Category# ofIndividuals Frictional unemployment 20 Structural unemployment 35 Cyclical unemployment 60 Discouraged workers 5 Underemployed workers 10 Fully employed workers410 Population900 Consider an economy made up of 100 people, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The unemployment rate is approximately:
A. 10 percent. B. 12 percent. C. 17 percent. D. 20 percent.