WebThe Present Value Formula The general solution comes in this formula: The present value formula for annual (or any period, really) interest. PV=\frac {C} { (1+i)^n} P V = (1+ i)nC where: C = Future sum i = Interest rate (where '1' is 100%) n= number of periods Example Using the Present Value Formula WebBusiness. Economics. Economics questions and answers. Suppose the nominal interest rate is 6.00 percent a year, the tax rate is 40.0 percent, and the inflation rate is 3.00 percent per year. What is the real after-tax interest rate?
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WebANSWER 2: The current short-run equilibrium value for Real GDP is Y = 12,500 and the price level is p = 625. ANSWER 3: The percent change in the price level as we move from the current (short-run) price level to the new (long-run) price level is: -12.8% WebRound to two decimal places as needed.) c) The doubling time is years. (Simplify your answers. Round to one decimal place as needed.) Suppose that $17,943 is invested at an … mc skins the skindex
Suppose that the real interest rate was 3 percent and - Course Hero
WebSuppose that 2-year interest rates are 5.0% in the United States and 1.02% in Japan and that spot exchange rate is JPY98.53 = USD1. Suppose that 1 year later, interest rates are 2.76% in both countries, while the value of the yen has appreciated to JPY95.90 = USD1. a. WebWhat happened with the value of savings? (2 marks) a) The dollar value of savings increased at 2 percent, and the value of savings measured in goods increased at 3 percent. b) The … WebApr 8, 2024 · Suppose the interest rate is 10.2 % APR with monthly compounding. What is the present value of an annuity that pays $ 119 every 6 months for 6 years? Question content area bottom Part 1 The 6 -month effective interest rate is 5.209 %. (Round to three decimal places.) Part 2 The present value is $enter your response here . life is not a race quotes