At an annual effective interest rate of i, i > 0, the following are all equal: (i) the present value of 10,000 at the end of
6 years; (ii) the sum of the present values of 6,000 at the end of year t and 56,000 at the end of year 2t; and 60 THE BASICS OF INTEREST THEORY (iii) 5,000 immediately. Calculate the present value of a payment of 8,000 at the end of year t 3 using the same annual effective interest rate.
'Liquidity' is described as the 'asset's property of being able to be sold without affecting its value or the degree to which it can be easily converted into cash.' If the liquidity ratio of a company is high, then its ability to pay off its current liabilities is high as well. Therefore, the company can pay off the debtors with immediate effect and thus, it would be able to meet its short-term financial commitments. This is the key reason for people's high investments in the companies having a higher liquidity ratio as they analyze the debt paying capability of the company first.
d. cut spending equal to the reduction in tax revenue
Recession is basically a period of temporary economic decline where people usually buy less and less trade happens. When this happens, the government loses TAX revenue (money coming in from taxes) so a good way for govt. to balance the budget (amount that govt needs for spending on different areas) is to cut spending equal to the reduction in tax revenue (the reduction came about due to recession)
In other words, reduce spending by x dollars (here x dollar represents the lost tax revenue.
-The person must have committed an act that is prohibited
-The act must have been committed with intent
The defenses include
- under duress
C officer john law had a good and enough cause to search Jake and seize his firearm since his movement was suspicious. It was midnight and he was about a shop in a strange manner and he was even talking to someone else. Such actions is enough to get an officer at alert. It seemed like jake and the man were planning on how to commit a crime. A search on the man even revealed a weapon. 4th amendment gives a protection to peoples privacy and immunity from unnecessary search and seizures. But the amendment does not say a probable cause like the officer had done was illegal. This search was reasonable and very legal. Jakes rights were not violated.