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BigorU [14]
3 years ago
5

Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,000, $1,300, $1,300, a

nd $1,400, respectively. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Business
1 answer:
PolarNik [594]3 years ago
8 0

Answer:

$4,199.29

Explanation:

Year 1 Payment value = $1,000

Year 2 Payment value = $1,300

Year 3 Payment value = $1,300

Year 4 Payment value = $1,400

Present value of Payments = [(FV year 1 / (1+r)^1)+(FV year 2 / (1+r)^2)+(FV year 3 / (1+r)^3)+(FV year 4 / (1+r)^4)

Present value of Payments = [(1000/(1+0.07)^1)+(1300/(1+0.07)^2)+(1300/(1+0.07)^3)+(1400/(1+0.07)^4)

Present value of Payments = $4,199.29

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he SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. The equilib
Vaselesa [24]

The equilibrium interest rate is 5 percent, the equilibrium quantity of loanable funds is increased to $250 billion and the government has a budget $100 billion.

Explanation:

The government enters the market when it has a surplus. The tendency of government budget is to rise the real interest rate and decrease investment. The private supply of the loanable funds will increase to match the quantity of loanable funds based on the government demand.

when the Government surplus is for $100 billion a year, the equilibrium interest rate falls to 5 percent and the equilibrium quantity of loanable funds increases to $250 billion a year.

Thus, The SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. The equilibrium interest rate is increased to 5 percent, the equilibrium quantity of loanable funds is $ 250 billion and the government has a budget of $100 bilion.

3 0
3 years ago
Questionnaires use only closed-ended questions not open-ended questions. <br> a. True <br> b. False
OlgaM077 [116]
If it is a simple yes or no question then yes. If it is one that asks for an explanation then no. Like "Yes, but..." or "No, and..." 

Hope this helps.
6 0
3 years ago
1. You are the owner of a small business that is a defendant in a lawsuit in federal court. You received bad news from your lawy
Serga [27]

Answer:

Kindly check explanation

Explanation: After the verdict of the judge, as a lawyer who stood for the defendant, the lawyers would want to find a way out of the verdict such that his client could get a more favorable judgment, hence the option to appeal. However, appealing the verdict of a court also has two possible outcomes, which are either winning and getting a more favorable verdict which is avoiding the whole or part of the $50,000 fine or losing again which ultimately results in more expenses incurred during the duration of the legal suit. It could also dent the image of the business as his decision to appeal may be deemed as obstinate.

5 0
4 years ago
Prices for airline tickets change on average about once per month. This would suggest that airline ticket prices are
DENIUS [597]

Answer:

relatively flexible

Explanation:

Flexible pricing is when there is room for negotiation of prices of a product between the buyers and sellers.

So the price is prone to change in short amount of time.

Sticky price on the other hand tends to be non negotiable and the does not change over time.in the given scenario prices for airline tickets change on average about once per month.

So there is constant change of the price every month. Meaning the buyer can convince the seller to change his offering price.

The price is relatively flexible

8 0
3 years ago
Why is it a problem if the country produces 2 million cars and 75 million tons of iron ores one year
TiliK225 [7]
Lots of exports but low products being produced. 2 million cars is extremely small number for cars it is unbalanced and must rely heavily on those car imports
8 0
4 years ago
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