Answer:
there is an economic principle that states that 1 dollar today is worth more than 1 dollar in the future, since an invested dollar could earn interests and gain value.
For example, we can assume a 6% interest rate (0.5% monthly interest rate), and using the present value formula we can determine the present value of $100:
- given to us in 30 days = $100 / (1 + 0.5%)¹ = $99.50
- given to us in 150 days = $100 / (1 + 0.5%)⁵ = $97.54
- given to us in 300 days = $100 / (1 + 0.5%)¹⁰ = $95.13
In order to calculate the value of $100 given to us tomorrow, we would need to determine a daily interest rate = 6% / 360 = 0.00017
- $100 given to us tomorrow = $100 / (1 + 0.00017)¹ = $99.98
since the amount of money is not that large and the interest rate is rather low, the difference in value is not that large. But imagine if you used a 24% interest rate instead of 6% (monthly interest rate = 2%)
- $100 given to us in 30 days = $100 / (1 + 2%)¹ = $98.04
- $100 given to us in 150 days = $100 / (1 + 2%)⁵ = $90.57
- $100 given to us in 300 days = $100 / (1 + 2%)¹⁰ = $82.03
as the interest rate increases, the present value decreases.
Answer:
2,3,5,6 on Edge 2020
Step-by-step explanation:
Answer: 216, 343, 512, 729, 1000, 1331, 1728, 2197, 2744
Step-by-step explanation: The terms are the cubes of the numbers 1, 2, 3, 4, 5...
2 times 2^30 simple means
that = (2^1) x (2^30)
<span>In multiplying numbers of the same base (in this case 2), the
exponents are just added, therefore giving us:
</span>
(2^1) x (2^30) = (2^31)
Answer:
<span>2 to the 31 power</span>
