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kap26 [50]
4 years ago
12

If the interest rate is 10​%, what is the present valueLOADING... of a security that pays you ​$1 comma 100 next​ year, ​$1 comm

a 230 the year​ after, and ​$1 comma 331 the year after​ that?
Business
1 answer:
konstantin123 [22]4 years ago
7 0

Full Question :

If the interest rate is 10%, what is the present value of a security that pays you $1100 next year, $1230 the year after, and $1331 the year after?

Answer:

The Present Value is $3,016.53  

Explanation:

Kindly find attached for details.

Download xlsx
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Answer:

a.contains debt financing

Explanation:

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A company is said to be geared when it has some element of debt financing. This is the same as leverage. Hence Leverage implies that a company contains debt financing

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Market maven -

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Explanation:

To find the change in aggregate expenditures, we need to find the change in consumption. For this, we will use the marginal propensity to consume formula:

MPC = ΔC/ΔY

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We know that out MPC is 0.5, and our ΔY is $billion. We plug these amounts into the formula:

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