Assuming an nominal interest rate

Assignment Help Business Economics
Reference no: EM132117886

You sold a motorcycle and accepted a note with the following cash flow stream as your payment. It pays you nothing now, $726 next year, and $6,000 for the three years after that(years 2-4). What was the effective price you received for the motorcycle assuming an nominal interest rate of 8.5%?

Reference no: EM132117886

Questions Cloud

Calculate the return and standard deviation : Calculate the return and standard deviation for the following stock, in an economy with five possible states.
By how much would wages rise : Can you attach a number to your explanation? In the model, by how much would wages rise if a third of the population died from disease?
What does olson mean by the statement : Institutions and economic performance: Read the article on institutions by Mancur Olson, cited in footnote 10. (You may be able to find it on the Web by typing)
Explain why do you think this difference might be : For 0,1 and 3,5 cases, explain if you observe any difference you in accuracy. Also, explain why do you think this difference might be.
Assuming an nominal interest rate : What was the effective price you received for the motorcycle assuming an nominal interest rate of 8.5%?
What percent of the first dgits of pi are : Using an internet search, locate a text file that contains the first 100,000 digits of pi. If this file includes the decimal point, remove this in a text editor
Why does it fail to deliver economic growth : What is the mechanism in the Solow model that generates growth? Why is this an appealing mechanism? Why does it fail to deliver economic growth in the long run?
What is monthly payment : a. What is your monthly payment? b. How much of your 20th payment is payment of principal?
What is the solution of the solow model : What is the solution of the Solow model for consumption per person in the steady state, c* C* /L*? How does each parameter in the solution affect c*, and why?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd