What is the meaning of Net Present Worth?

Q: xplain the importance of investing early

A: Investing can be defined as the act of resource allocation, mainly money, with the expectation or…

Q: Which are the Decision Rule for Simple Investments?

A: Answer - Simple Investment - Investment which an individual do into there day to day life like…

Q: Write the net present or future worth expression?

A: The Net present value is the present value of a future sum of the money in the economy. The net…

Q: What is the maximum amount of deposits that can be supported by total bank reserves of $50 billion…

A: Reserve are the part of deposit that are kept by the bank.  Reserve is the product of reserve ratio…

Q: How can the future worth be calculated?

A: The present worth method or the Net present value method is an important method used for determining…

Q: The table below shows levels of employment, output, consumption, and saving for a private closed…

A:

Q: Dennis is planning to invest his money to earn more. He is willing to take a little risk by buying…

A: Dennis is want to buy income earning assets and he is ready to bear less risk . Then following…

Q: Consider worker 1 with non-labour income Y facing a wage offer w and a utility function defined over…

A: worker 1's utility function is U(c,l) = lnC + 4lnl worker 2's utility function is U(c,l) = cl

Q: What is Investing Activities? Give some examples?

A: Investing activities refers to those activities which relate to the sale and purchase of long-term…

Q: How is saving important?

A: Saving: - Saving is that part of income that is not consumed or kept as reserves by the people in an…

Q: What’s equity

A: Financial instruments are the assets that can be traded. These instruments represents the monetary…

Q: A monopolist with a straight-line demand curve finds that it can sell one unit at $7 each or seven…

A: While the firms main objective is to maximize profits, it is the profit maximizing ouput, which…

Q: What is the importance of saving?

A: Saving money refers to the act of setting aside a portion of your income or earnings for future use.…

Q: What is the difference between an asset and liability?

A: In economics and also in business(accounting), it is vital to weigh the assets that a company owns…

Q: Classify different types of investments?

A: Investments are classified into three types of investment which are equity investment, debt…

Q: Warren Buffett’s 7 principles to investing

A: Business is important all around the world. For the functioning of business, four factors of…

Q: Making decisions under conditions of uncertainty involves what factor?

A: A decision under uncertainty is when there are numerous questions and no chance of realizing what…

Q: Why is it important to use Cash Flows in Economic Analysis?

A: The cash flow can be defined as the total volume of money which is transferred in and out of…

Q: What is a bond?

A: Bonds are fixed income securities and acts as a loan to a borrower. It is a kind of contractual…

Q: Which type of savings account and interest rate are an incentive for people to save money?

A: A savings account can be a safe deposit box that you do not intend to use immediately. Savings…

Q: What is the future worth of a series?

A: Future value (FV) is a calculation of the value of a series of recurring payments at some point in…

Q: At a price of $10 per unit, Gadgets Incorporated is willing to supply 14,000 gadgets, while United…

A: Price elasticity of supply: - Price elasticity of supply measures the responsiveness of change in…

Risk and Uncertainty

Uncertainty refers to a situation when there is one possible outcome of a decision but where the probability of occurrence of each particular outcome is not known or cannot be estimated.