Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, a
igor_vitrenko [27]
Answer:
The present value of cash flows is $ 5,292.13
Explanation:
The present value is today's equivalence of the company's future cash flow discounted using the 7% interest rate as a discount rate.
Formula for pv of a cash flow=cash flow/(1+r)^n
r is the 7% interest rate
n is the relevant year each cash flow relates to
PV=$1,350/(1+7%)^1+$1550/(1+7%)^2+$1550/(1+7%)^3+$1850/(1+7%)^4=
$ 5,292.13
Answer:
the correct answers are,
- safety
- liquidity
Explanation:
saving money does not include much risk and is not affected by market volatility and prices. Most of the time, the savings' are guaranteed by the banks and governments through various securities.
Also, money in savings are easy to get back for your use!
Answer:
The correct answer is: shifts rightward, causing the price level to rise.
Explanation:
The money supply curve portraits the money supplied in the market at a specific interest rate. The money supply is increased by the central bank by purchasing bonds or other assets -in this case, the Federal Reserve- causing the money supply curve more to the right which at the same time lowers the interest rate.
Reduction in the price. If they do not reduce the price, then people will not buy the product, and they will be left with too many of the same products.
