What is the future value of $1,000 in three years if the rate of discount is equal to 5 percent?

A) $1,150.00
B) $1,005.00
C) $1,157.63
D) $863.84


Answer: C

Economics

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Refer to the figure above. If the government of China wants to keep the exchange rate below E yuan per dollar:

A) it will have to buy dollar and sell yuan. B) it will have to buy yuan and sell dollars. C) it will have to buy both dollars and yuan. D) it will have to sell both dollars and yuan.

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The Smoot-Hawley tariff triggered a trade war during the Great Depression of the 1930s

Indicate whether the statement is true or false

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When a liquidity trap situation exists, the most appropriate policy to increase output would be

A) a central bank sale of bonds. B) an increase in government spending. C) a central bank purchase of bonds. D) none of the above

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Suppose that at the current level of output, price = $100, MC = $100, AVC = $80, and ATC = $90. Which of the following is TRUE?

A) The firm should decrease output. B) The firm should shut down. C) The firm should increase output. D) The firm should maintain the current level of output.

Economics