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:
$1,280 every year and $106.66 every month.
Step-by-step explanation:
You would do 4,000 by 4. Which would be 1,000. Then you would divide 560 by 4. After, you add both of your products together and you get 1,280. Obviously there are 12 months in a year, so you would divide your sum by 12. Then you would get 106.66. Basically, that is how you would get the answer.
I hope this helps!
(If you have the kindness in your heart to give me brainliest, I would appreciate it.)
7
5 times 7
equals 35
then you add 15
and get 50
It would take 5 hours for all the bacteria to die. 1000 divided by 5 is 200 so 200x5=1000
Yes, since 17 is larger than 1 and 0.17 is less than 1.
