Author Question: The present value of a promise to pay 5,000 every year forever when the prevailing interest rate is ... (Read 45 times)

Davideckstein7 · **on:** Jun 30, 2018

The present value of a promise to pay 5,000 every year forever when the prevailing interest rate is 10 percent equals
a. 5,000
b. 50,000
c. 100,000
d. 250,000
e. 500,000

Question 2

If the U.S. dollar depreciates, it means that
a. the value of the U.S. dollar has increased
b. the value of foreign exchange has decreased
c. fewer U.S. dollars are required to purchase foreign exchange
d. more U.S. dollars are required to purchase foreign exchange
e. exports will immediately fall