Answer:
<em>Deflation</em>
Explanation:
<em>Deflation is the overall decrease in products and services prices when the rate of inflation drops below 0%</em>. it naturally occurs when an economy's money supply is fixed.
The buying power of currency and salaries in moments of deflation is greater than they would have been.
This is different but comparable to <em>price deflation, which is a general price level reduction.</em>
The correct answer would be 81
Answer:
PV= $8,447
Explanation:
Giving the following information:
Future value= $13,000
Number of months= 9*12= 108
Interest rate= 0.4/100= 0.004 compounded montlhy
To calculate the initial investment required, we need to use the following formula:
PV= FV/(1+i)^n
PV= 13,000/(1.004^108)
PV= $8,447
Answer:
The answer is 9.85%
Explanation:
The number of periods N = 9years(10 years minus 1 year ago)
Yield to Maturity (I/Y) = ?
Present value of the bond (PV) = $950.70
Future value of the bond(FV) = $1,000
Annual payment (PMT) = $90 (9% x $1,000)
Using a financial calculator to solve the problem ( BA II plus Texas instruments):
Yield to Maturity (I/Y) = 9.85%