The interest rate is 6 percent a year and you expect to receive $1,000 next year and the following year. What is the present value of $1,000 to be received next year? What is the present value of $1,000 tobe received in two years? The present value of $1,000 to be received next year is
Q: Give at least one (1) determinant of poverty and explain in detail
A: Lack of resources to satisfy necessities like food, clothes, and shelter constitutes poverty. But…
Q: Consider a short-run IS-LM model where MPC =0.75. Suppose that taxes are initially given by T=1500.…
A: A decline in per unit tax levied by the government causes a reduction in the production cost and…
Q: Jeremy derives all of his utility from consuming milk shakes; he devotes his entire $20 allowance to…
A:
Q: Explain as completely as you can what an economist means by supply?
A: The quantity of a thing that is on hand for consumption or purchase is known as the supply. The…
Q: If balance of trade is negative, Xn is negative number. The impact of Xn is A. GDP will become…
A: GDP is the gross domestic product. GDP consists of consumption , investment, government spending,…
Q: QUESTION 5 For the below ME alternatives, which machine should be selected based on the PW analysis.…
A: Present worth which represents the worth of this money in current dollars, is the total of future…
Q: A toy factory Avengers can generate 50 (CO2) emissions without any regulation. The marginal control…
A: Given that, Emission without regulation = 50 units Emission after the regulation = 20 units
Q: 1. Use the following demand schedule to determine total revenue and marginal revenue for each…
A: Total revenue is total receipts by selling the goods. It is equal to price multiply quantity. i.e.,…
Q: You are considering borrowing $100,000 at a compound annual interest rate of 9%. The loan agreement…
A: The principal amount of the loan (P)=$100,000 Rate of interest on the loan (i)=9% per year…
Q: 5) Which of the following statements is not true about utility? We can compare utility across…
A: Consumer Decision-Making: Microeconomics places great significance on consumer decision-making.…
Q: Jim's nominal income in 2010 was $72,500. How much was his real income if 2010…
A: While nominal income and nominal wages are not adjusted for inflation, real income is. Real wage is…
Q: How does an increase in disposable income change the equilibrium in the loanable funds market? An…
A: When speaking of money that can be borrowed, loanable funds are employed. Savings in the home and/or…
Q: Consider an economy that may be represented by the following short-run IS-LM model described by…
A: The equilibrium of the product's market serves as the basis for the IS curve. The IS curve shows the…
Q: Problem 1 Synergy Company sells co-amoxiclav antibiotic. The probability distribution of the demand…
A: The expected value could be described as a weighted average of all the possible outcomes. Here, the…
Q: Give an example of a good that is nonrival in consumption and nonexcludable. What do economists call…
A: Non-rival refers to those goods which the consumers do not have to compete for. The use of these…
Q: List down the main ingredients or raw materials in manufacturing the Ferrari sports car.
A: Introduction Ferrari is one of the luxury cars which is manufactured in Maranello. Maranello is in…
Q: For each of the following goods, explain why a free-rider problem arises or how it is avoided.…
A: Introduction When a person enjoys the benefit of goods and services without paying the price,…
Q: Demand function = Qdx = 6,000 - 1,000Px Supply function = Qsx = 1,000Px Obtain the equilibrium…
A: Equilibrium is a situation where market demand is equal to market supply.
Q: mitially, an economy has a maximum real GDP of $5 trillion. .) Using the line drawing tool, draw the…
A: The aggregate supply curve will be shifting towards right when there is an increase in productivity…
Q: 12 Commodity currencies are less prone to inflation since they have value as commodities and thus…
A: 12) There are two types of currencies that exist. Fiat currency and commodity currency. Fiat money…
Q: The following cash flows result from a potential construction project for your company: Receipts of…
A: The given data is as follows: Receipts: At the start of contract=$545,000 At the end of…
Q: Note: Plot your points in the order in which you would like them connected. Line segments will…
A: From the table, the value of I, G and X-IM is unchanged I=250 G=150 X-IM=*200 Only the consumption…
Q: what is the book value of electronic test equipments after 9 years of use if it depreciates from its…
A: Depreciation means a fall in the value of assets due to wear, tear, and obsolescence.
Q: If consumption is $30,000 when income is $35,000, and consumption increases to $36,000 when income…
A:
Q: Question 6 of 6 Desert Company invests its annual savings in different mutual funds. In 2014, they…
A: In 2014, They invested in high growth funds = $13,500 They invested in medium growth funds = $3,500…
Q: In the figure below, as the economy expands from GDP2 to GDP3, a is created. Government Transfer and…
A: Budget refers to the document of government which consists of the revenue and expenditure of the…
Q: Considering the alternatives shown in the table below, perform an incremental ROR analysis and…
A: Given, There are 4 alternatives : A, B , C and DYears : 0 and 1Initial Cost and Benefit are given…
Q: state some flaws in the democratic system of government
A: A democratic system of government is where the power is vested in the hands of the people so that…
Q: Quantity Demanded 1 2 3 Mambr Quantity Supplied 7 5 Price $7 6 5 65432 4402019ub 14 stw boeromanicos…
A: The equilibrium price is established where the demand and supply are equal.
Q: Which of the following are examples of Free Trade Zones? (Check all that apply) A. North…
A: Free Trade Agreement is a fact between two or more nations to reduce international barriers and…
Q: 2. Indicate whether the following activities create a positive or negative externality: a.…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Billy B. decided four years ago to add high bush blueberries to his commercial vegetable farm near…
A: When entire costs and total revenues equal, the break-even point is achieved, leaving a small…
Q: If balance of trade is positive, Xn Is a positive number. The impact of Xn is A. GDP will become…
A: A country that has a positive trade balance is considered to be a net exporter, meaning that it…
Q: Apples Bananas Country A Country B 800 O a b С Od 500 1500 If all resources of Country A and Country…
A: In order to find out the benefit from trade for both the countries, we need to find out the…
Q: Please for your assistance with understanding the logic behind this question. Suppose the Parliament…
A: In the field of economics, those who are looking for work but aren't hired are considered to be…
Q: If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective…
A: Here, given information is Nominal interest rate (r): 10% Compounding Period (n): 4 (quarterly)…
Q: Define poverty in your own words
A: No economy can escape from the Economic problems as are inevitable part in the process of economic.…
Q: ou are a pricing analyst for QuantCrunch Corporation, a company that sells a statistical software…
A: Two part tariff is followed by monopoly firm to maximize the profit. The consumer has to pay one…
Q: The expression for Hui's MRS (= Ux/Uy) is given by MRS = 4.5y/(x+1). What is the value of the…
A: Given information: MRS = 4.5y / (x+1) We need to find the value of dMRS / dx at the point where x=2…
Q: Which of the following is added to the GDP? A. Exports B. Imports C. Net Exports D.…
A: GDP is the gross domestic product. It includes consumption , investment , government spending and…
Q: A simplified version of Leontief's analysis of the 1947 American economy has the following…
A:
Q: What effects would each of the following have on aggregate demand or aggregate supply? In each case…
A: While aggregate supply and price levels are directly correlated in the economy, aggregate demand and…
Q: The following equation relates spending on medical care in thousands of dollars on age in years:…
A: Here we are given the estimated regression line where the dependent variable is "medical spending"…
Q: If demand for the dollar is high, the price of the dollar is most likely to remain stable fall, then…
A: The exchange rate will rise if there are more dollars demanded than there are dollars available (An…
Q: QUESTION 4 For the below ME alternatives, which machine should be selected based on the PW analysis.…
A: Salvage value is the book value of an asset after all depreciation has been fully expensed. The…
Q: Carlos buys a bond that will pay him $1,000 after 3 years. It accumulates interest at an annual…
A: Given that, Future value = 1000 Time period = 3 years Rate of interest = 7% or 0.07
Q: How did you come up with 0.13587 from (A/P, 6%,35)? Also with 3.46511 from (P/A, 6%, 4)?
A: The present worth of an annuity due describes to us the current worth of a series of expected…
Q: nthony has already committed most of his income to his monthly living expenses and saving a few…
A: Given Anthony's remaining budget (m)=$15 per week The price of coffee is 2.50 per cup and the price…
Q: The economy experiences a decrease in the price level and an increase in real domestic output. Which…
A: The total quantity of demand for all finished goods and services produced in a given economy is…
Q: a. If GDP is $800 and government spending is G₁, the size of Motak's budget deficit is $ b. If…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts question…
The interest rate is 6 percent a year and you expect to receive $1,000 next year and the following year.
What is the present value of $1,000 to be received next year? What is the present value of $1,000 tobe received in two years? The present value of $1,000 to be received next year is $ ____. >>>>Answer to 2 decimal places.
Step by step
Solved in 2 steps
- The interest rate is 6 percent a year and you expect to receive $1,000 next year and the following year. What is present value of $1,000 to be received in two years? The present value of $1,000 to be received in two years is $____ Answer to 2 decimal places Thanks!Suppose that the interest rate is 5 percent. Enter your answers rounded to 2 decimal places. A. What is the future value of $100 four years from now? $ How much of the future value is total interest? $ b. By how much would total interest be greater at an interest rate of 7 percent than at an interest rate of 5 percent? $Suppose that the interest rate at which Joanne can borrow and lend is 10 percent per year, but she can earn $22,000 with a high school degree. Her tuition and books at college cost $6,000 and her living expenses are $15,000 per year. Savings are deposited at the end of the year they are earned and receive (compound) interest at the end of each subsequent year. Similarly, the loans are taken out at the end of the year in which they are needed, and interest does not accrue until the end of the subsequent year. Now that the interest rate has risen, should Joanne go to college or go to work?
- 10. What is the present value of a perpetuity of $100 if the appropriate discount rate is 7%? If interest rates in general were to double and the appropriate discount rate rose to 14%, what would happen to the present value of the perpetuity?Consider that you were given a US savings bond that will pay $100 when it matures in ten years. What happens if the interest rate rises to the present value of this bond payment?Why happens if the interest rate rises to the present value of this bond payment? A. Increases in present value B. The current value is unaffected. C. A decrease in present valueSuppose that the demand for laonable funds for car in the Milwaukee area is $11million per month at an interest rate of 10 percent per year, $12million at an interest rate of 9 percent per year, $13million at an interest rate of 8 percent per year and so on. a. If the supply of loanable funds is fixed at $17million, what will be the equilibrium interest rate? b. If the government imposes a usury law and says that car loans cannot exceed 3 percent per year, how big will the monthly shortage (or excess demand) for car loans be? c. How big will the monthly shortage for car loans be if the usury limit is raised to 7 percent per year?
- Jobu is thinking about borrowing $10,000 from Mike. He promises Mike cash flows (a stream of payments) of $5000 for the next three years. If Jobu’s cost of capital is 15%, what is the Net Present Value of the investment for Mike? Show your calculation clearly.Consider a bond and a stock. The bond will pay out 100,000 at the end of year five. It will pay nothing at the end of years 1, 2, 3, or 4. The stock is for a corporation that makes profits off a patent. It will pay dividends for the next 25 years, 5,000 dollars at the end of each year. After that, the patent expires and the dividends go to zero. a) Suppose the interest rate is zero. What is the present value of each of these two assets? In other words, if you had to pay now, which is worth more? [Note: This requires calculating “present values”; you can use excel and if needed] b) The Fed’s monetary policy raises the interest rate to 2.5%. Which is worth more? c) The Fed’s monetary policy raises the interest rate to 5%. Which is worth more? d) What is the intuition for the different results in a), b) and c)? e) Do the above results suggest that, by raising the interest rate, the Fed can powerfully affect the price of assets like stocks?Three students have each saved $1,000. Each has an investment opportunity in which he or she can invest up to $2,000. Here are the rates of return on the students’ investment projects: Student Return (Percent) Carlos 4 Felix 7 Janet 15 Assume borrowing and lending is prohibited, so each student uses only personal saving to finance his or her own investment project. Complete the following table with how much each student will have a year later when the project pays its return. Student Money a Year Later (Dollars) Carlos Felix Janet Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate rr. A student would choose to be a lender in this market if his or her expected rate of return is than rr. Suppose the interest rate is 6 percent. Among these three students, the quantity of loanable funds supplied would be ,…
- 14. To use the Net Present Value (NPV) method of capital budgeting, one could calculate the present value of all the future net cash flows of an investment discounted at its cost of capital, and then subtract which one of the following? OA. The salvage value OB. The present value of the salvage value OC. The initial cost of the investment OD. The initial cost of the investment less the present value of the salvage valueSuppose a person has a total credit card debt of $1,500$1,500 that has a 7%7% yearly interest rate. This person also has a savings account with $2,500$2,500 that pays 2%2% interest per year. Despite the net loss, the person keeps both.Calculate how many times the person appreciates the $1$1 of savings more than $1$1 of credit card debt if the person relates similarly to both values of percent paid and received. Enter your answer in the box below and round to two decimal places if necessary.Suppose a handbill publisher can buy a new duplicating machine for $ 500 and the duplicator has a 1-year life. The machine is expected to contribute $ 550 to the year's net revenue. Instructions: enter your anwer as a whole number. What is the expected rate of return? (in percentage) If the real interest rate at which funds can be borrowed to purchase the machine is 8 percent, will the publisher choose to invest in the machine? Will it invest in the machine if the real interest rate is 9 percent? if it is 11 percent?