Time value of money (TVM) is the concept that an amount of money today is worth more than the same amount of money in the future because of the potential for earnings. This is a basic principle of finance. Money in hand has more value than the same money paid in the future.
Time value of money. Simply put, the value of a given amount of money today is worth more than it will be worth tomorrow. This is not due to temporal uncertainty, it is simply due to timing. The difference between the value of money today and tomorrow is called the time value of money.
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Answer:
d. A perpetuity is a stream of regularly timed, equal cash flows that continues forever.
Explanation:
A perpetuity refers to a future stream of cash flows, paying a constant amount regularly till forever. Such stream is never ending.
The present value of a perpetuity is computed by dividing the constant amount receivable till forever, by required rate of return/cost of capital.
Present value of a growing perpetuity is given by
= 
wherein cash flows represent cash flows receivable growing at g% rate till forever
r = required rate of return or cost of capital
g= growth rate of cash flows
Where the cash flows are of constant amount i.e non growing nature, the present value of such a perpetuity is given by,
= 
Answer:
A.
Explanation:
When the Fed wants to expand the money supply through open market operations, it purchases government securities from member banks. They do this in order to control the amount of money that travels through the countries banking system so they can move along with the monetary policies that they have in place.
THE QUESTION:
You have been put in charge of the taxation of the Mars colony. You need to decide how to tax the citizens of the colony.Will you institute a progressive, regressive, or a flat tax on income? Will you institute excise taxes? If yes, what goods and services will you tax and why? Will you institute sales taxes, property taxes, or VAT on goods?
Explanation:
I am not good at these terms, but
I would not use a flat tax, as I know that it would make lot's of people's life harder, from the middle class, to lower class, that might put people in financial struggles. Instead, I would charge different taxes on people, judged on their income. That would help lot's, and would be a good deed. Also, I will also use property taxes, because most of the time, if you didn't have money to spare, you wouldn't spend it on a house, right? I might have sale taxes, which I would say depends on how much I need as a government on MaRs! :|)
Answer: $6,500
Explanation:
Given that,
Quantities of apples in 2008 = 500
Quantities of apples in 2009 = 500
Quantities of apples in 2010 = 550
Quantities of computer in 2008 = 5
Quantities of computer in 2009 = 5
Quantities of computer in 2010 = 6
Prices of apple per kilo:
In 2008 = 1
In 2009 = 2
In 2010 = 3
Prices of computers:
In 2008 = 900
In 2009 = 1000
In 2010 = 1000
Real GDP in 2010 prices for year 2008:
= (Quantities of apple in 2008 × price of apple in 2010) + (Quantities of computers in 2008 × price of computers in 2010)
= (500 × $3) + (5 × $1000)
= $1,500 + $5,000
= $6,500
