EBK ESSENTIALS OF ECONOMICS
7th Edition
ISBN: 8220102452107
Author: Mankiw
Publisher: CENGAGE L
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Question
Chapter 19, 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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