« 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 37 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?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

20,000 year old spotted hyena painting from the Chauvet Cave, France 20,000 year old spotted hyena painting from the Chauvet Cave, France
Adults in the middle-aged group (37–42 years) score higher on measures of generativity than either ... Adults in the middle-aged group (37–42 years) score higher on measures of generativity than either ...
Sam and Jen had a tax liability of 5,115 last year. They were entitled to tax credits of 112 ... Sam and Jen had a tax liability of 5,115 last year. They were entitled to tax credits of 112 ...
Siri plans to retire in 18 years and would like to receive $10 000.00 per month for twenty ... Siri plans to retire in 18 years and would like to receive $10 000.00 per month for twenty ...
Opener Chiasmata present between synapsed homologs during the first meiotic prophase Opener Chiasmata present between synapsed homologs during the first meiotic prophase
Dragon Chinese new year 2023 Dragon Chinese new year 2023
Video: Energy Flow - Trophic Levels and Food

For a complete list of videos, visit our video library