Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 27, Problem 1QCMC
To determine
Calculation of present value of money.
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If the interest rate is zero, then $100 to be paid in10 years has a present value that isa. less than $100.b. exactly $100.c. more than $100.d. indeterminate
In five years, you want to be able to buy a new car for $30,000. If the interest rate is 3 percent a year, what is the present value of this sum?
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$30,000.00
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$25,500.00
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$25,878.26
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$34,778.22
Akhisha wanted to buy a cell phone which will have a price of P13,000 for 90 days from now due to the increase in prices of 12 percent simple interest. What is the present worth of a cell phone?
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Chapter 27 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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