The present value of a future payment to be received in three years is $1,000 . If the interest rate is 5%, what is the amount that will be paid in three years?
a. $1,150.00
b. $1,157.63
c. $1,215.51
d. $1,250.00
b
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If the Fed has announced that it plans on increasing the interest rate it will
A) engage in contractionary open market operations, thereby decreasing the money supply. B) engage in expansionary open market operations, thereby decreasing the money supply. C) engage in expansionary open market operations, thereby increasing the money supply. D) engage in contractionary open market operations, thereby increasing the money supply.
Other things the same, an increase in the amount of capital firms wish to purchase would initially shift
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.
Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially, ________
A) the economy remains at full employment B) structural unemployment increases C) there is a shortage of workers in both sectors D) cyclical unemployment increases
The empirical data reveals the velocity of M2 to be:
A. relatively stable in the long run. B. higher than the velocity of M1. C. stable only when measured annually. D. highly volatile in the long run.