At an interest rate of 8.25% compounded annually, what is the present discounted value of $2,000 to be received 2 years from now?
A. $1670.00
B. $1706.77
C. $1716.74
D. $1835.00
B. $1706.77
You might also like to view...
Which of the following ideas apply to the neoclassical growth theory?
I. The rate of technological change influences the rate of economic growth. II. Technological change promotes saving and investment. III. Convergence of economic growth rates across countries A) I only B) III only C) I and II D) I, II and III
Which of the following is a component of aggregate demand?
A. Consumption B. Investment C. Net exports D. All of these are components of aggregate demand.
Assume the central bank pursues contractionary monetary policy. What is the first round effect on the value of the domestic currency, if there is low mobility in the international capital markets?
a. The value of the currency rises. b. The value of the currency falls. c. The value of the currency is unaffected. d. The change in the value of the currency is ambiguous.
Which of the following is an example of Maslow's first level of needs?
a. food b. car c. school d. church