2. An investment will provide $10,000 at the end of 3 years. The investment receives interest at 12%compounded annually.a. What is the present value of the investment?

Formula: Present value = future value *(1+I)n Here, I is the interest rate N is the number of…

Answered: mpounded annually. What is the present…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A 3 year straight note was executed by a buyer. The interest paid over the term was $3,431.70. The annual interest rate was 9.3%. What was the loan amount? Select one: a. $9,150 b. $36,900 c. $31,915 d. $12,300 Finish attempt...
i will 10 upvotes urgent Securities with less predictable prices and have longer maturity time is considered as A. cash equivalents B. long-term investments C. inventories D. short-term investments
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Ex-Ante Real Interest Rate 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% DLF $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 Quantity of Loanable Funds ($Million) The graph above shows a hypothetical loanable funds market. Currently the market is in equilibrium. Lenders and borrowers expect the inflation rate for the next year to be 2 percent and the nominal interest rate is SLF the nominal interest rate changes to interest rate equals percent. Suppose that the government announces that it will reduce the inflation rate to 1 percent. According to Fisher, this event creates an excess supply of loanable funds equal to million dollars in the very short run. However, soon percent. 6.00 percent and the real

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mpounded annually. What is the present value of the investment?