What is the future value of $375 at an interest rate of 3 percent one year from today?
a. $371.75
b. $386.25
c. $393.33
d. None of the above are correct to the nearest cent.
b
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During the year, suppose a country's total purchases of newly produced capital goods is $2,000 billion, issues $1,600 billion of stock certificates, and has $500 billion in depreciation. Gross investment in this country equals
A) $2,500 billion. B) $2,000 billion. C) $2,100 billion. D) $4,100 billion. E) $3,600 billion.
Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 1000 units of food and 47 machines. This year, it is producing 1050 units of food and 52 machines. Which of the following events could not explain the increase in output?
a. a reduction in unemployment b. an increase in available labor c. an improvement in technology d. Any of these events could explain the increase in output.
Firms buy new capital goods only if they expect this investment to yield:
a. a higher return than other possible uses of their funds. b. the same return as other possible uses of their funds. c. no return as compared to other uses of their funds. d. a lower return than other possible uses of their funds.
According to the No Marginal Improvement Principle, if X* is the best choice then at X* it must always be true that:
A. either MB = MC or the activity X is not finely divisible. B. either MB ? MC or the activity X is not finely divisible. C. either MB < MC or MB > MC. D. MB = MC.