Bundle: Principles Of Macroeconomics, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
8th Edition
ISBN: 9781337378932
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 14, Problem 1QR
To determine
Calculation of present value of money.
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Angela puts $5,000 in a savings account that pays 5 percent per year.
The future value of her money one year from now is $
As the interest rate
(Enter your response as a whole number.)
the future value of Angela's $5,000 savings will increase.
Akhisha wanted to buy a cell phone which will have a price of P13,000 for 90 days from now due to the increase in prices of 12 percent simple interest. What is the present worth of a cell phone?
a. P15,621
b. P12,621
c. P13,621
d. P14,621
Suppose you received a US savings bond as a gift, and the bond pays $100 at maturity, which is ten years from now. What happens to the present value of this bond payment if the interest rate increases?
A.
Present value increases
B.
Present value is not affected
C.
Present value declines
Chapter 14 Solutions
Bundle: Principles Of Macroeconomics, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
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