The formula for finding the present value of an amount M that will be received one year from now, when the interest rate is R, is
A) M × (1 + R/100).
B) M × (1 + R).
C) M / (1 + R).
D) M / R.
E) M / (100R).
C
You might also like to view...
Which of the following is not found in the corporate form of business?
a. stocks b. bonds c. state charter d. dividends e. unlimited liability
A government has the ability to use fiscal and monetary policy to mitigate the effects of economic fluctuations.
Answer the following statement true (T) or false (F)
Suppose a company increases production from a point where marginal cost equals average total cost to a point where marginal revenue and marginal cost are equal. Is it a good idea for the company to do this? Why?
A. No, average total costs have increased which means the company is not minimizing losses. B. Yes, because average variable costs are always less than average total costs. C. No, the previous level of output was the most efficient because it had the lowest average total cost. D. Yes, even though the previous level of output had minimized the average total cost, there was still profit to be earned by producing additional units.
Technological advances will cause the supply curve to:
A. shift to the left. B. become steeper. C. become flatter. D. shift to the right.