Examlex

Solved

Calculate Answers to the Following Questions Using Future Value And/or

question 85

Essay

Calculate answers to the following questions using future value and/or present value tables.Round amounts to the nearest dollar.
a.What is the present value of receiving $1,000 at the end of each year for six years,assuming 7 percent interest compounded annually?
b.What amount must be deposited at the bank today to grow to $300 in five years,assuming 14 percent interest compounded semiannually?


Definitions:

Long-run Equilibrium

A state in economics where all factors of production are fully adjusted to the market condition and all economic agents have no incentive to change their behavior.

Consumer Demand

The desire and willingness of consumers to purchase a certain quantity of goods or services at various price points, at a particular time.

Competitive Increasing-cost Industry

An industry where supply costs increase as output expands, often because resources become scarcer or harder to obtain as production grows.

Long-run Equilibrium

A state in which all firms in a perfectly competitive market earn zero economic profits, with no incentives for new firms to enter or existing firms to exit.

Related Questions