Macroeconomics (Fourth Edition)
Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
Question
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Chapter 7, Problem 7E

(a)

To determine

Calculate the present discounted value at the different interest rate.

(b)

To determine

Calculate the present discounted value of $50,000 received 10 year from now.

(c)

To determine

Calculate the present discounted value of $100 every year and forever starting immediately.

(d)

To determine

Calculate the present discounted value of $100 every year and forever starting 1 year from now.

(e)

To determine

Calculate the present discounted value of $100 for the next 50 year starting immediately.

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