Answer:
PV=?
N=3
FV= 47,700
PMT= 17,000
I= 5%
Put values in financial calculator
Pv=$87,500
Now use this value to calculate residual value at the end of year 4
PV= 87,500
N=4
Fv=?
PMT= -17,000
I=5
$33,084= residual value in 4 years.
Explanation:
Answer:
i think d is the correct answer
Answer:
The effect of negative interest rates on the economy is reflected in option D: negative interest rates simply cannot happen in reality. Answer D is the correct response.
Explanation:
Answer C is partially correct. In reality, experiments are running on economies as today: Greece economy. After a huge recession in previous years, the Government has released bonuses that, at the end of their effective period, will be charging people for actually buy them, and not paying them back. This leads us to answer D: negative interest rates can actually happen, but they cannot exist as an economic mechanism that develops the economy: customers will go for profit, not cost.
The effect of this model is negative on the economy since it will not provide enough resources for stimulation. Also, it will not slow it down since it is not expected that an instrument with negative interest rates will be accepted, in the form of bonuses, by customers; or loans, provided by banks.
Answer:
$500 million
Explanation:
The solution of the money supply and its effect is here below:-
Decrease in money supply = $50 million ÷ reserve ratio
= $50 million ÷ 10%
= $500 million
If $50 million were used to repay loans, that will have raised money supply. Thus, buying $50 million in government securities from the fed reduces the supply of capital.
Answer:
See explanation section
Explanation:
See the image below to get the answer:
