Which expression is used to calculate the future value of an amount of money?
A. Present Value x (1 + interest rate)time
B. Present Value/(1 + interest rate)time
C. Present Value x (1 + time)interest rate
D. (1 + interest rate)time/Present Value
A. Present Value x (1 + interest rate)time
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Network effects on the Internet:
A. help firms like Google and Facebook dominate their respective markets. B. allow many firms to operate, making Internet markets highly competitive. C. cause economies of scale to be exhausted quickly. D. create a level playing field for all types of media, communication, and commerce on the Internet.
Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mortgage payment; $250 cost of electricity to run the printing presses; $800 for ink and paper; and $200 in city property taxes (based on the value of the building and land). Its total variable costs are:
A. $8,950. B. $8,750. C. $6,550. D. $6,300.