Which of the following represents the correct formula for present value?
A) Present value = Payment T periods from now × (1 + interest rate)T
B) Present value = Payment T periods from now - (1 + interest rate)T
C) Present value = Payment T periods from now + (1 + interest rate)T
D) Present value = Payment T periods from now / (1 + interest rate)T
D
You might also like to view...
Which of the following is true?
A) If consumption of a good gives rise to a positive externality, it can be internalized by taxing the producers of the good. B) If production of a good gives rise to a negative externality, it can be internalized by taxing the producers of the good. C) If production of a good gives rise to a positive externality, it can be internalized by taxing the consumers of the good. D) If consumption of a good gives rise to a negative externality, it can be internalized by subsidizing the purchase of the good.
Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to the ________ economists, under rational expectations an expected decrease in taxes would not change AD or AS.
A. Keynesian B. the new classical C. monetarist D. none of the above