is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 1% is $. (Round your response to the neareast two decimal place) If a loan is paid after two years, and the amount $1000 is to be paid then with a corresponding 2% interest rate, the present value of the loan is $- (Round your response to the neareast two decimal place)
is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 1% is $. (Round your response to the neareast two decimal place) If a loan is paid after two years, and the amount $1000 is to be paid then with a corresponding 2% interest rate, the present value of the loan is $- (Round your response to the neareast two decimal place)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![is based on the notion that a dollar paid in the future is less valuable than a dollar paid today.
The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 1% is $. (Round your response to the neareast two decimal place)
If a loan is paid after two years, and the amount $1000 is to be paid then with a corresponding 2% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)
Next
11:41 AM](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3734eca5-1c61-4ba0-9228-f611059dd607%2F493b5705-3b93-480f-8ba3-1dc0a7ae4c84%2Fwvepyx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:is based on the notion that a dollar paid in the future is less valuable than a dollar paid today.
The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 1% is $. (Round your response to the neareast two decimal place)
If a loan is paid after two years, and the amount $1000 is to be paid then with a corresponding 2% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)
Next
11:41 AM
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