If you are to receive a payment of $200 at the end of the first year and a payment of $250 at the end of the second year and the market interest rate is 5 percent, the present value of this income stream is
a. $400.37
b. $417.23
c. $450.00
d. $475.37
e. $490.13
B
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The "discount rate" is the rate used by the Fed when
A) the Fed extends a short-term loan directly to a commercial bank. B) the Fed extends a short-term loan to one of the regional Federal Reserve banks. C) the Fed calculates the present value of particular long-term investment projects. D) the Fed makes cash available for the federal government.
The Robinson-Patman Act amended and further refined which of the following laws?
a. The Sherman Antitrust Act. b. The Celler-Kefauver Act. c. The Clayton Act. d. The FTC Act. e. The Herfindahl-Hirschman Act.
The law of diminishing marginal utility is the reason for upward sloping supply curves
a. True b. False Indicate whether the statement is true or false
When (if at all) are budget deficits inflationary?
A. When AS is perfectly horizontal B. When AS has a very steep slope C. When AS has a downward slope D. When AS intersects AD