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Paha777 [63]
3 years ago
9

10. Your grandmother offered you a choice of gifts: you could receive either $10,000 today, or $2,000 per year at the end of eac

h of the next six years. Assuming a discount rate of 5%, which gift is worth more today?
Business
1 answer:
Llana [10]3 years ago
6 0

Answer:

Receiving $2,000 every year for 6 years is worth more today.

Explanation:

$2,000 received per year is annuity as same amount is received every year.

Given:

Amount received every year = $2,000

Time period = 6 years

Rate = 5%

Check PVIFA (Present value of annuity factor) table for 5% and 6 years, we get 5.0757

Present value of annuity = 2,000 × 5.0757

                                       = $10,151.4

Receiving $2,000 every year for 6 years is worth more today than receiving $10,000 today as present value of annuity is worth $10,151.4 today which is more than $10,000.

So, $2,000 every year is worth more today.

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When the aggregate demand curve shifts rightward, this will increase Economia's real output and the price level.

<h3>What happens when the aggregate demand shifts rightward?</h3>

The aggregate demand curve is a curve that shows the total quantity of all goods and services demanded by the economy at different price levels. The aggregate demand curve slopes downward.

When  aggregate demand curve shifts to the right, there would be an increase in the real output and the price levels.

To learn more about the demand curve, please check: brainly.com/question/25140811

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3 years ago
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4 0
4 years ago
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How much may Adrian deduct?

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How would your answer to Part a change if, instead of displaying the vase, the museum sold the vase to an antique dealer?

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Currently, museums are less likely to accept restricted donations, unless of course the artwork is worth it.

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