What is the present value of $1,000 paid to you in six years if the interest rate is 9%? Work it out to the nearest cent.
What will be an ideal response?
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If the marginal private cost of producing one kilowatt of power in California equals five cents and the marginal social cost of each kilowatt equals nine cents, then the marginal external cost equals ________ per kilowatt
A) five cents B) nine cents C) four cents D) fourteen cents
Suppose there is a bank panic. Which of the following would not be a consequence of this bank panic?
A) Bank total reserves would decrease. B) Bank checking account balances would decrease. C) Required reserves would increase. D) The economy would likely enter into a recession. E) Individual banks would have to shrink the value of loans they made.
Which of the following does not contribute to differences in interest rates?
a. Different loans are for different periods of time. b. Large loans generate more administrative costs per dollar than smaller loans. c. Different loans are subject to different tax rules. d. Loans to established businesses are evaluated differently from loans to new businesses. e. The longer the period of repayment, the greater the risk of higher-than-expected inflation.
The economic perspective focuses largely on marginal analysis, which means analyzing:
A. Peripheral elements of a given issue or action B. The minor aspects of a given issue or decision C. The changes in the situation that would result from a given action D. Emotional and psychological facets of a given action