This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The present value of a promise to pay 5,000 every year forever when the prevailing interest rate is ... (Read 70 times)

Davideckstein7

  • Hero Member
  • *****
  • Posts: 555
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

coreycathey

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

D


Davideckstein7

  • Member
  • Posts: 555
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

jordangronback

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Determining the order and rate constant of an irreversible first-order reaction Determining the order and rate constant of an irreversible first-order reaction
How to calculate present value using the compound interest formula (Question 2) How to calculate present value using the compound interest formula (Question 2)
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ... AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ...
Determine the nominal annual rate of interest of the following ordinary general annuity. Determine the nominal annual rate of interest of the following ordinary general annuity.
Video: Oxygen - hemoglobin dissociation curve & Hemoglobin's affinity with oxygen - acidity

For a complete list of videos, visit our video library