A person who would work for 25 more years earning $100,000 per year and discounts the future at an interest rate of 5% per year has an annually-compounded discounted expected present value of current and future earnings equal to
A. $0.9 million.
B. $0.5 million.
C. $1.4 million.
D. $1.1 million.
Answer: C
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Globalization and growing technology have produced
A) more opportunities for low-skilled labor than for high-skilled labor. B) equal opportunities for low-skilled and high-skilled labor. C) outsized, exponential rewards for superstar talent. D) rewards for labor that have reduced income inequality.
The employment/population ratio is
A) more volatile than the participation rate. B) roughly constant over time. C) less volatile than the participation rate. D) smaller in 2012 than in 1970.
Patents stimulate investment
a. by giving inventors an incentive to incur up-front costs of developing new products b. by giving tax breaks to inventors c. by guaranteeing a profit from new products d. by lowering interest rates e. through government payments that cover costs of research and development
Which one of the following statements is TRUE?
A. Demand deposits are assets of a bank. B. A bank's assets plus its liabilities must equal zero. C. A bank's reserves can only be kept as cash in its vault. D. Assets generate income for a bank.