Answer:
$6,542,660.43
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 19 = $500,000
I = 5%
PV = $6,542,660.43
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
The answer is D hope this helps
Answer:
No, the bank is short on daily reserves by $12.56 million.
Explanation:
The daily average net required would be calculated as follows:
$15.2 million x 0% = 0
($110.2 million - $15.2 million) x 3% = $2.85 million
($687 million - $110.2 million) x 10% = $57.68 million
$2.85 million + $57.68 million = $60.53 million
$60.53 million - $12.74 million = $47.79 million (Daily Average Net Required)
The bank needs to maintain largest average daily reserves for $47.79 million. In this case the bank is maintaining only average reserve of $35.23 million at the Fed. This means that it is short by $12.56 million in order to meet the required reserves.
Answer:
Increases in the production of one good require larger and larger sacrifices of the other good
Explanation:
Option first is correct because the opportunity cost refers to the sacrifice of another commodity in order to increase the production of one commodity. For example, if a country produces two commodities that are wheat and paddy. So if the country wants to increase the production of wheat then it has to decrease the production of paddy. Thus, the magnitude of decrease of paddy is the opportunity cost of wheat. Therefore, option A is correct.
