I think it would be the fixed income market. Hope this helps you.
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Answer:
The correct answer is : 35.49
Explanation:
Calculation of the current bond price:
N = 28, I = 3.6, PMT = 32.50
FV = 1,000; CPT PV = -938.89
Calculation of the price in one year:
N = 26, I = 3.4, PMT = 32.50,
FV = 1,000; CPT PV = 974.38
So, the dollar change in price is:
$974.38 - $938.89 = $35.49
Answer:
After 100 years, real GDP per person in Alpha is <u>4 TIMES</u> smaller than real GDP per person in Omega.
Explanation:
Current real GDP per capita in Alpha = $2,000
in 100 years, the real GDP per capita in Alpha = $2,000 x (1 + 1.5%)¹⁰⁰ = $5,848.87
Current real GDP per capita in Omega = $2,000
in 100 years, the real GDP per capita in Omega = $2,000 x (1 + 2.5%)¹⁰⁰ = $23,627.43
Alpha's real GDP per capita is 4 times smaller than Omega's = $23,627.43 / $5,848.87 = 4.04 times
*I used the future value formula: FV = PV (1 + r)ⁿ
PV = A*[1-(1+r)^-n]/r
A = annual payment = $100,000
r = Interest rate = 8% = 0.08
n = Number of year = 20
PV = present value of the earnings
Therefore,
PV = 100,000*[1-(1+0.08)^-20]/0.08 = $981,814.74
Efficiency will undoubtedly suffer if the US government increases assistance payments to the poorest Americans while raising income taxes on the wealthiest Americans and an increase in inequality.
<h3>What will happen if the U.S. raises taxes on the wealthiest Americans?</h3>
Every society must choose between equality and productivity. If the US government increases assistance payments to the poorest Americans while raising income taxes on the wealthiest Americans, the outcome will probably be a decline and increased inequality in the United States.
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