In New York City, you need a license to drive a taxicab. Each license is valid for three years, and then it expires. The holder of a license can expect to earn $10,000 in profit each year. If the interest rate is 5 percent (0.05) per year, what is the value of a newly issued taxicab license? (Assume that each year's profit is received at the end of the year.)
a. $1,990.74
b. $10,000.00
c. $14,074.07
d. $27,232.48
e. $30,000.00
D
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Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because
a. those who stand to gain have an incentive to tell the truth. b. those who stand to lose have an incentive to exaggerate their true costs. c. answers to the survey questions will always be downwardly biased. d. not everyone asked will be using the highway.
In the mid 90's, over _____% of all black families are headed by women.
A. 30 B. 45 C. 60 D. 75
The net revenue gains to states from implementing remote taxes would likely be less than estimated because
A. people will just lie about their location. B. consumers will decrease? out-of-state purchases. C. there is no way to identify? out-of-state sales. D. tax rates vary among states.
Which of the following would cause an outward shift of aggregate demand?
a) an increase in interest rates b) an increase in tax rates c) the expectation of higher income d) improvements in technology e) an increase in imports