If an asset has a future value of $120, a present value of $30, and an interest rate of 4%, how many periods of compounding are there?
A) 45 periods
B) 35 periods
C) 28 periods
D) 100 periods
B
You might also like to view...
How does a cartel differ from an oligopolistic industry?
A. Oligopolistic industries cannot make economic profit. B. Cartels reduce uncertainty to maximize profits. C. Cartels are legal while oligopolies are illegal. D. Oligopolies face large amounts of competition while cartels do not.
Banks make use of the federal funds market in part to
A) pay their tax liabilities. B) manage liquidity risk. C) deal with moral hazard. D) deal with adverse selection.
The consumer price index was 200 in 2008 and 190 in 2009 . The nominal interest rate during this period was 4.5 percent. What was the real interest rate during this period?
a. - 0.75 percent b. - 0.5 percent c. 9.5 percent d. 9.75 percent
Arguing that economic growth will eventually stop because we will run out of natural resources:
A. ignores the power of markets to recognize shortages and induce changes in behavior. B. must be correct because scarcity exists. C. is supported today by the fact that richer countries have fewer natural resources. D. will only be correct if growth takes the form of newer, more efficient goods and services.