If you want to know the present value of $5,000 received in one year, and the interest rate is 2 percent, what formula can you use?
A) Present value equals 1.02 divided by $5,000. B) Present value equals $5,000 times 0.02.
C) Present value equals $5,000 times 1.02. D) Present value equals $5,000 divided by 1.02
D
You might also like to view...
A market exchange rate which has been adjusted for inflation is called a
A) nominal exchange rate. B) foreign market price index. C) real exchange rate. D) domestic exchange factor.
The vertical distance between a firm's average total cost curve, ATC, and its average variable cost curve, AVC
A) decreases as output increases. B) is equal to its marginal cost, MC. C) is equal to its total fixed cost, TFC. D) is equal to its average product.
If the CPI in the United States was 150 in 2003 and 160 in 2004, the inflation rate over the year is _____
a. 10 percent b. 20 percent c. 7 percent d. 30 percent e. 50 percent
If the consumer price index (CPI) was 125 at year-end of 2008 and 132.5 at year-end 2009, inflation during 2009 was
a. zero; prices were stable during 2009. b. 6.0 percent. c. 7.5 percent. d. 12.5 percent.