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

Economics

You might also like to view...

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.

Economics

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

Economics

In what ways can income redistribution be viewed as a public good?

What will be an ideal response?

Economics

The demand curve of a perfectly competitive firm is vertical.

Answer the following statement true (T) or false (F)

Economics