If $10,000 Is Invested in a Certain Business at the Start

question 47

Multiple Choice

If $10,000 is invested in a certain business at the start of the year,the investor will receive $3000 at the end of each of the next four years.What is the present value of this business opportunity if the interest rate is 7% per year?

• A)$148.53
• B)$161.63
• C)$172.45
• D)$178.88

Learn how to construct and interpret Edgeworth boxes for various economic scenarios.

Identify Pareto optimal allocations and understand the conditions under which they occur.

Analyze the impact of initial allocations on the determination of competitive equilibrium prices and consumptions.

Understand how to model and solve for competitive equilibrium in various market settings.