« previous next »

Author Question: Which is larger: the present value of 1 two years from now or the present value of 1 one year from ... (Read 78 times)

lidoalex

  • Hero Member
  • *****
  • Posts: 538
on: Jun 29, 2018
Which is larger: the present value of 1 two years from now or the present value of 1 one year from now? Explain.
 
  What will be an ideal response?

Question 2

If the implied exchange rate between Big Mac prices in the United States and the Philippines is 68 pesos per dollar, but the actual exchange rate between the United States and the Philippines is 43 pesos per dollar, which of the following would you
 
  expect to see?
  A) a depreciation of the dollar B) an increase in the demand for dollars
  C) an appreciation of the Philippine pesos D) a decrease in the demand for dollars


Ahernandez18

  • Sr. Member
  • ****
  • Posts: 361
Reply #1 on: Jun 29, 2018
Answer to Question 1

The present value of 1 one year from now is greater than the present value of 1 two years from now. At the same interest rate, a individual would have to put a greater amount aside if he wanted to end up with 1 after one year than he would have to if he put the money aside for two years.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
For the 2-year-old, encounters with peers provide valuable practice in communication and social ... For the 2-year-old, encounters with peers provide valuable practice in communication and social ...
Each year, the leaders of the world’s eight most powerful nations meet in a secluded place to make ... Each year, the leaders of the world’s eight most powerful nations meet in a secluded place to make ...
Dragon Chinese new year 2023 Dragon Chinese new year 2023
What single payment one year from now would be economically equivalent to payments of $1,000 ... What single payment one year from now would be economically equivalent to payments of $1,000 ...
Earth 150 Million Years Ago Earth 150 Million Years Ago
Video: What are Taste Receptors? How Does it Work? Animation

For a complete list of videos, visit our video library