Which of the following best expresses the payment a lender receives for lending money for three years?
A. PV/(1 + i)3
B. 3PV
C. FV/ (1 + i)3
D. PV/(1+i)3
Answer: D
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Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later. How much more will be in your account if the interest rate is 6 percent rather than 5 percent?
A. $440 B. $4,428 C. $1,549 D. $8,557
Suppose the price of a can was $5.10. In this case, to maximize its profit, the firm illustrated in the figure above would
A) decrease its production and would make an economic profit. B) not change its production and would make zero economic profit. C) not change its production and would make an economic profit. D) decrease its production and would incur an economic loss. E) not change its production and would incur an economic loss.
By offering more generous unemployment insurance programs, European countries can expect
A) workers to gain new skills quickly in response to fluctuations in the labor market. B) longer periods of unemployment for their workers. C) to pay less in taxes than in the United States. D) shorter periods of unemployment for their workers.
Indifference curves further from the origin imply:
A. a lower level of satisfaction. B. the same level of satisfaction as any other curve. C. a higher level of satisfaction. D. None of the statements is correct.