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Scilla [17]
3 years ago
13

Assume the real rate of interest is 3.00% and the inflation rate is 6.00%. What is the value today of receiving 14,488.00 in 13.

00 years?
Business
1 answer:
OverLord2011 [107]3 years ago
6 0

Answer:

Present Value= $15,874.25

Explanation:

Giving the following information:

Assume the real rate of interest is 3.00% and the inflation rate is 6.00%. What is the value today of receiving 14,488.00 in 13.00 years?

<u>This is a rare case where the interest rate is negative:</u>

Interest rate= 0.03 - 0.06= -0.03

Having said this, the present value is higher than the final value:

PV= FV/ (1+i)^n

PV= 14,488/ 0.97^3= $15,874.25

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KatRina [158]

Answer:

Going to college has an opportunity cost of not working or working less. Buying a car has an opportunity cost of not being able to save as much. Buying a house could have an opportunity cost of not being able to travel. Opportunity cost is the choice you give up when selecting something else.

Explanation:

8 0
3 years ago
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How much interest is earned in just the third year on a $1,000 deposit that earns 7% interest compounded annually?
Sav [38]

Answer:

Interest earn= $80.14

Explanation:

Giving the following information:

PV= $1,000

i= 7%

n= 3

<u>First, we will calculate the future value at the second year:</u>

FV= PV*(1+i)^n

FV= 1,000*(1.07^2)

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<u>Now, for the third year:</u>

FV= 1,144.9*1.07= 1,225.04

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3 years ago
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nalin [4]

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This is further explained below.

<h3>What are Insurance companies?</h3>

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In conclusion, Within the context of a PPO, insurance companies negotiate savings with hospitals. Alternative

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It replaced the North American Free Trade Agreement which had been in effect since January of 1994.

The USMCA does includes new guidelines for digital trade and regulatory practices between the three nations.

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2 years ago
Do you think it is easier to increase or decrease government spending
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