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Reptile [31]
2 years ago
8

3) What is the present value of $1000, received at the end of 4 years of investment, with a discount rate of 4%?

Business
2 answers:
MA_775_DIABLO [31]2 years ago
8 0

Answer:

$854.81

Explanation:

The formula for calculating the present value is as below

PV = FV/( 1 + r)^n

Where Fv =1000

r = 4% or 0.04

n= 6

PV = $1000/ (1 + 4/100)^4

PV=$1000/(1 + 0.04)^4

PV=$1000/1.16985

PV =$854.81

.

erastova [34]2 years ago
4 0

Answer:

3629.9

Explanation:

I just did the test and thats what it told me the correct answer was.

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Price serves as a a. rationing device. b. transmitter of information. c. means of determining who gets what of the available lim
enot [183]

Answer:

e. all of the above

Explanation:

Price are an mechanism that serve to coordinate economic activity. They help coordinate economic decisions such as rationing, they transmit information, and they also help economic agents make decisions about what to sell, what to buy, what to exchange, and so on.

8 0
3 years ago
A. Suppose there is a surge in consumer confidence, creating an increase in aggregate demand in the economy. The Federal Reserve
Mrac [35]

Answer:

See below.

Explanation:

For a, first we calculate the credit multiplier of the economy,

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Credit multiplier = 1 / 0.25 = 4

This means that any change in money supply will be 4 times as much in the economy, hence to induce a change of $120 billion, the Fed will decrease the money supply by 120/4 = $30 billion. This will increase the interest rates just enough to stabilize aggregate demand.

For b, we again start by calculating the credit multiplier.

Credit multiplier = 1/0.10 = 10

Since the Fed want to stimulate investment, it needs to use an expansionary monetary policy.

The Fed thus increases the money supply by 150/10 = $15 billion.

This will have the total effect of 150 billion on the whole thus achieving the Fed's objectives.

Hope that helps.

4 0
2 years ago
What are three goods provided by the federal government?
Rudiy27
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What are some reasons people dont manage their money well for the future?
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