Bundle: Principles of Macroeconomics, Loose-Leaf Version, 7th + LMS Integrated Aplia, 1 term Printed Access Card
7th Edition
ISBN: 9781305242500
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 14, Problem 1QR
To determine
Calculation of present value of money.
Expert Solution & Answer
Explanation of Solution
The present value of $200 can be calculated as follows:
The present value is $101.67.
The present value of $300 can be calculated as follows:
The present value is $77.53.
Economics Concept Introduction
Concept introduction:
Present value: Thepresent value refers to the today’s value of the future amount that adjusted with the existing interest rate.
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Chapter 14 Solutions
Bundle: Principles of Macroeconomics, Loose-Leaf Version, 7th + LMS Integrated Aplia, 1 term Printed Access Card
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