What Is the Present Value of a Payment of $2,000

question 134

Multiple Choice

What is the present value of a payment of $2,000 to be received two years from today if the interest rate is 5%?

• A)$2205
• B)$2200
• C)$1818.18
• D)$1814.06

Describe the role of taxation and government policies in affecting the loanable funds market.

Analyze the causes and effects of shifts in the supply and demand curves for loanable funds.

Explain the concept of crowding out and its implications for the economy.

Understand the distinction between saving and investment in the loanable funds market.

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