What single investment made today earning 15% annual interes

Assignment Help Microeconomics
Reference no: EM13819670

A. What single investment made today earning 15% annual interest will be worth 6,000 at the end of 12 years

b.What is the present value of $6000 to be received at the end of 12 years if the discount rate is 15%

c.What is the most you would pay today for a promise to repay you $6,000 at the end of 12 years if your opportunity cost is 15%

d. Compare and contrast the findings in part a thru c

 

 

Reference no: EM13819670

Questions Cloud

Determine greatest ethical dilemmas created by globalization : Determine the greatest ethical dilemmas created by globalization and the best way to address those dilemmas. Analyze kind of organizational structure you currently work under, and benefits or drawbacks of that structure.
Discuss the importance of understanding tone of voice : Discuss the importance of understanding tone of voice and body language in comprehending the meaning of what people say. Give examples of how the same words said in different ways have totally different meanings
Describe the role of the change agent : As you continue to progress in your leadership career you will have the opportunity to lead those younger and older than you. What challenges do you anticipate with leading each group? Describe the role of the Change Agent, and what major challenges ..
Determine the importance of reliability and validity : Determine the importance of reliability and validity in the context of a selection instrument. Analyze each term individually and explain your rationale.
What single investment made today earning 15% annual interes : A. What single investment made today earning 15% annual interest will be worth 6,000 at the end of 12 years b.What is the present value of $6000 to be received at the end of 12 years if the discount rate is 15%
Lead to increased conflict be addressed immediately : Provide 2 insights on conflict in organizations. Is conflict in organizations good or bad? Can conflict be avoided? Should all potential issues that can lead to increased conflict be addressed immediately? Expand your answers to show your understandi..
Determine how your current place of work could benefit : Determine how your current (or future) place of work could benefit from the same type of diverse workforce.
Use a financial calculator or computer software program : 16. Use a financial calculator or computer software program to answer the following questions: A. What would be the future value of $15,555 invested now if it earns interests at 14.5 percent for seven years? B. What would be the future value of $19,..
Amount of information flowing through corporate grapevine : In your opinion, has the introduction of email and other information technologies increased or decreased the amount of information flowing through the corporate grapevine? Explain your answer.

Reviews

Write a Review

Microeconomics Questions & Answers

  Write the estimated demand function

write the estimated demand function (with only P as the independent variable), inverse demand function, and marginal revenue (MR) function.

  Compute the coefficient of price elasticity

What is the formula for measuring the price elasticity of supply? Suppose the price of apples goes up from $20 to $22 a box. In direct response, Goldsboro Farms supplies 1200 boxes of apples instead of 1000 boxes

  Develop an exceptional supply chain

1. How has Dell Used its direct sales and build-to-order model to develop an exceptional supply chain? 2. How has Dell exploited the direct sales model to improve operations performance?

  What do you mean by producer surplus and how is it measured

what is producer surplus and how is it measured? what is the relationship between the cost to sellers and the supply

  Use the keynesian ad-as model

Use the Keynesian AD-AS model to answer the following questions. Draw the effects of a recession caused by a decease in aggregate demand. For simplicity, assume that your economy starts at general equilibrium.

  Is the effective interest rate on the loan really 20 percent

A lender made the following statement to a borrower: “You are borrowing $1,000, which is to be repaid in twelve monthly installments of $100 each. Your total interest charge is $200

  Technological advances lead to lower demand

Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the price of goods will soon follow." How does this work?

  Evaluate a current issue or situation

Economic tools and concepts to evaluate a current issue or situation that exists in today's health care industry.

  When the price of a superior good increases

When the price of a superior good increases, consumers demand more of it. As consumer income increases a larger percentage of that income is spent on superior goods.

  Q1 case studyon the advice of some of its wealthiest alumni

q1 case studyon the advice of some of its wealthiest alumni clare college has borrowed pound15m on a 40-year inflation-

  True about a monopoly

Suppose a firm is currently maximizing its profits (i.e., following the MR = MC rule). Assuming that it wants to continue maximizing its profits, if its fixed costs increase, it should. Which of the following is true about a monopoly?

  Effective rates of return per year were made on investment

An investor purchased a five percent, $1000 30-year bond for $850 with 22 years to maturity. The interest was payable quarterly. The bond was kept for only nine years and sold for $950 immediately after the 36th interest payment was received. What no..

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