Which would you rather have? a) $1,000, 5 years from now at 6% interest or b) $1,000, 3 years from now if the interest rate is 12%.
What will be an ideal response?
a) $1,000 x 74.73 = $747.30
b) $1,000 x 71.18 = $718.00
The present value of a) is greater than the present value of b).
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A product that must be actually consumed before the quality of the product can be determined is a(n)
A) search good. B) consumable good. C) consumption good. D) experience good.
Last week, Gina's bakery sold fewer cupcakes than ever before. Regression to the mean implies that the bakery:
A. has probably had other bad weeks, but Gina can't remember them. B. will sell more cupcakes this week. C. should stop selling cupcakes. D. is likely to go out of business.
Microfinance is aimed at encouraging entrepreneurs among the very poorest parts of the developing world to relocate to high-income countries.
Answer the following statement true (T) or false (F)
The graph shown demonstrates a tax on buyers. Who bears the greater tax incidence?
A. The buyer B. The government C. The seller D. The incidence is equally shared between buyer and seller