Suppose the interest rate is 6% and compounded annually. What is the present discounted value of 6 future annual payments of $150?
A. $634.46
B. $737.60
C. $849.06
D. $900.00
B. $737.60
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In a perfectly competitive market, a firm in long-run equilibrium will be operating
A) to the right of the minimum of the long-run average cost curve. B) to the left of the minimum of the long-run average cost curve. C) at the minimum of the long-run average cost curve. D) at the minimum of the marginal cost curve.
A higher real interest rate ________ saving and ________ consumption spending.
A. increases; decreases B. does not change; does not change C. increases; increases D. decreases; increases
In what ways can income redistribution be viewed as a public good?
What will be an ideal response?
The demand curve of a perfectly competitive firm is vertical.
Answer the following statement true (T) or false (F)