If the interest rate is 7 percent, what is the present value of $100 received two years from now
a. $107
b. $114.49
c. $87.34
d. $93.45
C
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Refer to Table 2-9. If the two countries specialize and trade, who should export wristwatches?
A) Thailand B) They should both be importing wristwatches. C) Japan D) There is no basis for trade between the two countries.
Deposits in European banks denominated in dollars for the purpose of international transactions are known as
A) Eurodollars. B) European Currency Units. C) European Monetary Units. D) International Monetary Units.
Although U.S. Steel is integrated into iron ore mining, it currently does not own any of the mines that supply its coking coal because:
a. the company has a high requirement of coking coal which cannot be supplied by a single mine. b. the coal prices are highly unpredictable and volatile. c. there are a limited number of coal suppliers. d. futures and options markets are available for coal.
A nation's country-risk premium increases if:
a. Central bank policies become more predictable. b. Expected inflation becomes harder to predict. c. Its government becomes more stable. d. All of the above. e. None of the above