Answer:
$3,168
Explanation:
We will receive $4000 in future (after 4 years time) which means all we want to know is the amount that we Derek must deposit today.
This present value of the $4000 payment received after 4 years from today can be calculated using the following formula:
Present value = Future Value / (1 + r)^n
Here
Future Value is $4000
r is 6%
n is 4 years
So by putting values, we have:
Present value = $4000 / (1 + 6%)^4 Years
Present value = $3,168
Answer:
B) Quantitative
Explanation:
Quantitative questions collecting data often begin with "how many" or "how much."
It can help keeps premiums down.
Answer:
The Federal Reserve has been at times biased in favor of the financial industry, because they have often put inflation targeting above the need to reduce unemployment when executing monetary policy. Besides, the financial industry has often been rescued by massive loans from the Fed.
However, the Federal Reserve has also acted in favor of reducing unemployment, specially during recessions, by expanding the money supply through a policy known as quantitative easing.
In conclusion, we can say that the Fed tends to be biased in favor of the financial industry, but not at all times.
Equilibrium interest rates refers to the point where the demand for particular amount of money is equal to the money's supply.
In this case, we just need to do a complete substitution and calculation
4000= 1 X[1200+0.5(6,000) - 200 (i)
]4,000=4,200- 200 (
i)I=<span>1%</span>
