Climate change and government action
Answer:
$778.05625
Explanation:
The computation of the amount of repayment is shown in the attachment below:
Given that
Proceeds for year 4 through 9 at $2Z, $3Z
The Principal of the loan amount = $10,000
Interest rate = 7% per year
Based on the given information, the value of Z or the amount of repayment is
= Principal of the loan amount ÷ Total annuity
= $10,000 ÷ 12.85254119
= $778.05625
Answer:
$44,955.10
$38,131.84
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Investment X
Cash flow each year from year 1 to 9 = $6900
I = 7%
PV = $44,955.10
Investment Y
Cash flow each year from year 1 to 5 = $9300
I = 7%
PV = $38,131.84
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
Changes income, which changes consumption, which further changes income
Explanation:
Fiscal policy is an effective technique to control savings, income and consumptions because of its multiplier effect. The first effect of fiscal policy is that it changes income and that change in income leads to a change in consumption because of purchasing power; likewise, due to the change in consumption income changes. So, fiscal policy has a multiplier effect.
