If you want to know the present value of a future payment received in one year, what formula can you use?
A) Present value equals future payment divided by one plus the rate of interest.
B) Present value equals future payment times the current market rate of interest.
C) Present value equals future payments times one plus the rate of interest.
D) Present value equals one plus the rate of interest in decimals divided by future payment.
A
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Total fixed cost is the cost of
A) labor. B) production. C) a firm's fixed factors of production. D) only implicit factors of production. E) only explicit factors of production.
According to economic theory, the real wage should
a. be greater than the price of the product produced. b. equal the marginal physical product of labor. c. be less than the marginal product of capital. d. decline as productivity rises.
Suppose a tax is imposed on each new hearing aid that is sold. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. As a result of the tax, the equilibrium quantity of hearing aids decreases from 10,000 to 9,000 . and the deadweight loss of the tax is $60,000 . We can conclude that the tax on each hearing aid is
a. $60. b. $120. c. $160. d. $200.
Which of the following is a market transaction?
A. Weather destroys a farmer's crops, leaving the farmer unable to buy groceries. B. A radio station changes its programming from classical to rock. C. A stock increases in value over the 30 years that it is owned. D. A college student purchases a laptop computer.